A Junior ISA (JISA) is designed to help build savings for a child, with contributions growing over time in an account held in their name. It can be used as a way to set money aside for their future, with rules in place to guide how much can be paid in each year and when the money can be accessed.
In this guide, we explain how Junior ISA limits work, including how much can be contributed, when allowances reset, and who can pay in. We’ll also cover some key rules around ownership, access, and how these limits fit into long‑term saving or investing for a child’s future.
This information is for general guidance only and does not constitute personal financial advice. Whether a Junior ISA is suitable depends on your child’s individual circumstances. Tax treatment depends on individual circumstances and tax rules may be subject to change in the future.
What is a Junior ISA?
A Junior ISA is a savings or investment account designed for children under 18 who live in the UK. It allows money to be set aside in the child’s name, helping to build tax‑free savings (meaning free from UK income tax and capital gains tax, under current rules). Tax treatment depends on circumstances and may change.
Parents or guardians are required to open the Junior ISA account on the child's behalf, - - children aged 16 or 17 can open a Junior ISA themselves - but the child owns the money. Funds paid into a Junior ISA are strictly locked away, and neither parents nor the child can make withdrawals until the child turns 18.
At age 18 the Junior ISA reaches maturity, meaning it automatically becomes an adult ISA and the child will have full, unrestricted access to the funds, and there are a range of options available to them once the Junior ISA matures. In some cases, where the parent or legal guardian has opened the account, the child can also manage account from age 16, depending on the provider.
Are there different types of Junior ISA?
There are two types of Junior ISA, Cash and Stocks and Shares. Cash Junior ISAs are savings accounts where interest is earned, while Stocks and Shares Junior ISAs invest in a range of stocks and shares, with returns depending on market performance.
Junior Cash ISA
A Junior Cash ISA works in a way that's more similar to savings accounts, with money held as cash rather than invested. Interest earned within a Cash JISA is accrued over time, and the money earned in interest will be free from UK income tax under current rules as long as it stays below the annual allowance.
The interest rate can change depending on the provider and the type of account. There are several options available, whether it's easy access accounts or fixed term options.
Cash ISA accounts are generally associated with lower-risk growth, as the balance of cash savings doesn't fluctuate the way investments do. However, returns may be lower over the long-term compared to investing, and the amount earned will depend on interest rates at the time.
Scottish Friendly does not offer Cash Junior ISAs.
Junior Stocks and Shares ISA
A Junior Stocks and Shares ISA is an account that allows you to start investing on behalf of a child. When you deposit funds in a Junior Stocks and Shares ISA, the money is placed into a range of investments like funds, shares, or bonds, depending on the chosen approach.
The value of the investments with a Junior Stocks and shares ISA can rise or fall, meaning returns are not guaranteed. Choosing an investment JISA could provide higher potential growth than holding money in cash savings but also comes with risk due to the fluctuation in value, and you could get back less than has been paid in.
All interest earned in a Cash JISA and any growth, dividends, or gains from a Stocks and Shares JISA are entirely free from UK income tax and capital gains tax, although tax treatment depends on individual circumstances and may change.
Scottish Friendly is an award-winning Stocks and Shares Junior ISA provider. Investment Life & Pensions Moneyfacts Awards 'Best Junior ISA provider' 2019-2025.
What is the Junior ISA annual allowance?
The Junior ISA annual allowance is the maximum amount that can be paid into a child’s account within a given tax year, while still benefiting from tax‑efficient treatment. This allowance applies to the total contributions made for that child, regardless of who pays in.
Current Junior ISA allowance
For the current tax year, the Junior ISA allowance is £9,000 per child. This limit applies across all Junior ISAs the child holds combined, and it's possible for a child to hold one Junior Cash ISA and one Junior Stocks and Shares ISA at the same time.
The allowance runs according to the tax year rather than calendar year, from 6 April to 5 April, and resets on 6 April each year. Any unused amount will not carry over into the next tax year.
Junior ISA allowances can change
The Junior ISA allowance is set by the Government and may change in future tax years. Any changes would usually apply at the start of a new tax year, so it’s important to check current limits when planning contributions.
Is the Junior ISA limit per child?
Yes, the Junior ISA limit is applied per child, not per account. This means each child has their own annual allowance, and all contributions made on their behalf must stay within that overall limit during the same year.
For example, if a child holds one Junior Cash ISA and one Junior Stocks and Shares ISA, the total paid into both accounts combined must not exceed £9,000 in a single tax year. This applies regardless of who contributes, as all payments are counted together within the child’s allowance.
What happens if I go over the Junior ISA limit?
Providers may well have checks in place to help prevent contributions exceeding the combined Junior ISA limit. However, if the limit is exceeded, the excess amount may need to be dealt with in line with the rules set by HMRC.
Contact HMRC
If too much is paid into a Junior ISA, the provider may inform you and advise on the next steps to resolve the issue - in some cases, you may need to contact HMRC for guidance on how the situation will be corrected. The exact process can depend on how much has been paid in and the circumstances of the overpayment.
No tax benefits for overpayments
Any extra money paid beyond the combined annual allowance of £9,000 will not benefit from the usual tax‑efficient treatment under current rules. This means you may need to pay tax on any returns generated by the excess amount, depending on your individual circumstances and existing tax rules.
Who can open a Junior ISA?
A Junior ISA must be opened by a parent or legal guardian who has parental responsibility for the child, or by the child themselves if they’re aged 16 or 17. The child must be under 18 and living in the UK to be eligible for the account.
Once the account is opened, the parent or guardian becomes the registered contact and is responsible for managing it on the child’s behalf until at least their 16th birthday. This can include making decisions about contributions and how the money is held, whether as cash or investments.
Although the parent or guardian manages the account, the money belongs to the child and is held in their name. The child may be able to take control from age 16, depending on the provider, but cannot access the funds until they turn 18.
Once the JISA reaches maturity at 18, it automatically converts into an adult ISA and the child has full control over what they do with the funds, whether that's withdrawing money, keeping it invested, or switching to a new provider or JISA type.
Who can add money to a Junior ISA?
Anyone can contribute to a child’s Junior ISA once it's set up, including parents, grandparents, and friends, as long as the total contributions do not exceed the £9,000 annual limit.
Contributions can be made in different ways and may vary by provider, whether it's a one‑off deposit, setting up a standing order, or making regular payments through a monthly direct debit from a bank account. All contributions are combined within the same annual allowance, so keeping track of the total paid in each tax year can help ensure you don't go over the limit.
Although different people can pay money into the account, it’s important to remember that the money in a Junior ISA belongs to the child from the outset.
Will my child's Junior ISA impact my adult ISA allowance?
No, contributions to a Junior ISA will not affect your own adult ISA allowance. The Junior ISA has its own separate tax-free allowance, which applies to the child’s account only, and the same is true of the adult ISA allowance.
The total annual allowance for all Junior ISAs combined is currently £9,000, while the adult equivalent is £20,000 combined across all ISAs an adult holds for the 2026/27 tax year. You can continue to save or invest up to the full amount of your own ISA allowance, as well as your child's ISA allowance, in the same tax year.
This separation exists because the money in a Junior ISA belongs to the child, not the parent or guardian. As a result, both allowances can operate independently, allowing families to save or invest for themselves and for a child at the same time.
Can I transfer an existing Junior ISA to another provider?
Yes, it is usually possible to transfer a Junior ISA to another provider if you want to change how the account is managed or explore different options.
A child can still only have one Junior ISA of each type (Cash and Stocks and Shares) at any one time, but it's possible to move the existing account between providers without losing its tax‑efficient status.
To keep these benefits, transfers should be done using the official Junior ISA transfer process rather than withdrawing the money yourself. The funds remain in the child’s name throughout, and the account continues to follow the same rules, including restrictions on access until the child turns 18.
Transfer a Junior ISA to Scottish Friendly
Is the Junior ISA allowance the same as the Child Trust Fund allowance?
No, the Junior ISA allowance is not the same as the Child Trust Fund (CTF) allowance.
Children born between 1st September 2002 and 2nd January 2011 were automatically given a Child Trust Fund by the Government. While Child Trust Funds still exist, they are not open to new applicants and have effectively been replaced by Junior ISAs.
If your child has an existing Child Trust Fund, it’s possible to transfer it into a Junior ISA.
Can I transfer a Child Trust Fund to a Junior ISA?
Yes, you can usually transfer a Child Trust Fund into a Junior ISA. However, children can't hold a Junior ISA and a Child Trust Fund simultaneously, so the existing account must be moved across rather than having both at the same time.
Transferring a Child Trust Fund allows you to continue building your child’s savings within the Junior ISA framework, with the total amount then subject to the Junior ISA rules and annual allowance.
Once the transfer is complete, you can start saving or investing in the new account, while it remains in the child’s name and follows the same access restrictions until age 18.
Some key takeaways
The Junior ISA allowance is £9,000 per child for 2026/27, shared across all contributions made in that tax year to all Junior ISAs combined.
The limit applies per child, not per account, and can be split between Cash and Stocks and Shares Junior ISAs.
The allowance resets each tax year (6 April), and any unused amount cannot be carried forward.
Anyone can contribute, but all combined payments must stay within the annual limit.
Money belongs to the child and is locked in until age 18, with no access for parents or contributors.
Important information
The value of stock market investments can go down as well as up, so you or your child could get back less than you’ve paid in.
The funds paid into a Junior ISA belong to the child and can only be accessed by them when they turn 18.
Tax-Free means the investment grows free from tax, with the exception of any tax your provider has already paid on your behalf (for example on dividends from UK shares). Tax treatment depends on individual circumstances and may be subject to change in the future.
This information is for general guidance only and does not constitute personal financial advice.
Scottish Friendly does not provide financial advice. If you’re unsure whether an ISA or Junior ISA is suitable for your situation, you may want to speak to an independent financial adviser.