Individual Savings Accounts (ISAs)

Can I put money into an ISA for my child?

Children aged 15 or under cannot have an ISA.

Children aged 16 or 17 can have a cash ISA. This can be either a Mini cash ISA or a Maxi ISA where you only put money into the cash component. The subscription limits are the same as for savers who are over 18 (up to £3,000 in each tax year up to 2005-06 and then £1,000 a year after that).

ISAs for 16 and 17 year-olds are primarily for those in full or part-time employment, including those still at school with, for example, Saturday jobs. But some young people will also use ISAs to save money given to them by their parents.

If you give your child money to invest in an ISA account, and the total investment income arising on all gifts from you, not just in ISAs, exceeds £100 in any tax year, all the income arising will be treated as part of your income for that tax year for income tax purposes. You should report that income to your HMRC office.

This rule does not prevent you from giving your child money to invest in an ISA – you just have to take care not to give your children too much. The £100 income limit for each child applies to each parent, not to both taken together.

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