Click the questions below to reveal answers to our most commonly asked Junior ISA questions.
Junior ISAs or Junior Individual Savings Accounts (JISAs) are tax efficient savings schemes in two separate components, Stocks and Shares (SAS) and Cash Account. We offer a Stocks and Shares JISA that also allows you to hold cash as part of your investment strategy. Investments in a JISA are free of capital gains tax.
Anyone under the age of 18 who does not have a Child Trust Fund (CTF) and are resident in the UK for tax, or are Crown employees and spouse serving overseas.
Yes. However, features in a CTF such as lifestyling, minimum subscriptions and annual charge cap of 1.5% may not be included in the JISA. Please see the Transfer Form to transfer a CTF to a JISA.
You can open a “execution only” stocks & shares JISA or “managed” stocks & shares JISA.
If you have selected our execution only option, you do. We try to make sure the investments you choose for your JISAs are allowed. However, we do not accept any tax consequences and/or liabilities of any kind should we later find that, whatever the reason, you have chosen non-qualifying or unsuitable investments. If you select the Managed option we choose the investments under a discretionary management agreement (please see Managed JISA Discretionary Questions & Answers).
You pay no capital gains tax on investments in the JISA. Any dividend income received is also free from further tax and the income from the child does not count towards the parents income.
You can subscribe up to £9,000 into JISAs in the 2020/21 tax year. This whole amount can go into a Stocks and Shares (SAS) JISA or, into a Cash account JISA or any combination between the two providing you do not exceed the limit. Only one SAS JISA and one Cash account JISA can be subscribed to in any given tax year and only one SAS and one Cash JISA can be held by a child throughout childhood, as such you can only contribute to a Pilling SAS JISA if you do not hold another SAS JISA with another provider. You can use different providers for the two components.
Contributions can be made by cheque, bank transfer or direct debit. You can contribute a lump sum or by monthly instalments. The minimum payment is £10 although investing this amount each month in an Execution Only JISA is not cost effective due to commission charges. If you choose to open an Execution Only ISA you should consider building up a larger cash balance before investing.
You can buy Qualifying shares officially listed on any recognised exchange. AiM shares, qualifying Investment Trusts, Unit Trusts, Open Ended Investment Companies and UCITS are allowed. You can also buy Gilts, Permanent Interest Bearing Shares (PIBS), Bonds, Convertibles and Preference shares. Extra charges may apply to some overseas stocks so you should check with us before dealing.
Options, Futures, Nil-Paid Shares and Warrants and shares in unquoted companies are excluded.
Yes. If you select the execution only option, you can trade as often as you wish, simply ring our team of dealers who will be pleased to assist you on 0161 832 6581.
If you are registered for Client Web Access (CWA), an email is sent to you informing you that a contract note is on your CWA account for you to view. Alternatively, a contract note is posted to you for every deal showing price, commission etc. If you do not have a contract note, or the contract you have received is incorrect please tell us without delay and at least within 2 business days. Regardless of cause, we can accept no financial liability for missing or incorrect contract notes unless brought to our attention within 10 business days of the original deal(s).
Yes, we make no charge to receive JISAs from other managers. You should check if your manager makes a transfer penalty. You may transfer all of your existing SAS JISA or all/part of a Cash JISA to us (see JISA Transfer Form).
Yes. We have to sell the shares and then buy them back into the JISA. This is known as a “Bed and JISA.” Before we can do this we need to be in receipt of your shares which can be supplied to us as either share certificates and signed CREST transfers or via electronic transfer. You may also buy different shares in the JISA from those you sell. NB. these transactions will be deemed a gift to the child and cannot be later taken back (see Charges).
As “arm’s length” deals, you pay the market-maker’s “turn” – i.e. the spread between the selling and buying prices goes to the market-maker. (We can often reduce this for you). You also pay 0.5% Government stamp duty on most purchases.
If the same holding is sold and then bought straight away in your JISA, you only pay commission on one of the trades. If you do not buy the same stock in the plan as the stock you are selling, then you also pay a nominal charge of £10 per sale.
Yes. Quarterly, we pay gross interest on your cash on a tiered system at rates fixed by Pilling & Co. Your cash is always held in accounts segregated from our own, and only in banks which are authorised and regulated by the FCA. We pay interest to your account after a variable administrative deduction. Our current rates are always available on request or can be viewed here. Amounts of less than £1 are not credited. Due to current low interest rates, it is unlikely your JISA will generate sufficient interest to be credited.
Dividends are credited to your account. If there is any tax due from interest payments from gilts for example, we will reclaim this from HMRC and add this to your account. Dividend income cannot be withdrawn from the JISA and paid to you.
Yes. With the Pilling Dividend Re-investment Plan (“DRIP”), where possible all your net dividends are re-invested upon receipt back into the shares of the company paying the dividend. Our commission is only 0.5% (with no minimum). Simply elect on the application form for the “DRIP” scheme.
No. Not until the JISA becomes an ISA when the holder turns 18.
No. As above, not until the JISA becomes an ISA when the holder turns 18.
Through CREST, where available, in our nominee “St Anns Square Nominees Limited” (SASNL). You are always the beneficial owner of the investments. They are never part of Pilling & Co’s assets nor, indeed, of the nominee company’s assets. There may be occasions when identical stocks are pooled together within Crest, or at another custodians, as one block under the title of SASNL. These cannot then be attributable to any individual client and ownership will be evidenced by an electronic bookkeeping entry at Pilling & Co instead of a physical certificate. In these circumstances you are warned, that in the unlikely event of an unreconcilable shortfall after the failure of a custodian, clients may share in that shortfall in proportion to their original share of the assets in the pool.
Yes. Pilling & Co accepts absolute responsibility for St Anns Square Nominees Limited. Your investments are not only protected under the Financial Services Compensation Scheme (FSCS), but, with the security of Pilling clients in mind, we also maintain additional professional financial risks insurance to cover the changing level of turnover in our business. If your investments must be held by a third party, we will use our best endeavours to make sure that only recognised and well-respected financial institutions are used. There may be further risk with non UK based custodians because of different settlement, legal and regulatory requirements. In some cases dividend payments may be briefly held in a custodians overseas bank before payment is made to Pilling & Co. However, we do not accept responsibility for such third party safe custody obligations.
We write to tell you of any action effecting your investments including conversion and subscription rights, takeovers and similar offers. We process any capital reorganisations, demergers etc. You may only take up rights issues and open offers in a JISA if you have cash in the plan, or can add new cash to a JISA. If you do not have enough cash, then the funds must be raised inside the plan. Where investments are pooled, entitlements are allocated on a “pro rata” basis and are rounded down to the nearest whole unit.
You must give your clear instructions direct to the Pilling ISA Department or by email to caisapilling.co.uk by the requested date, or we can accept no responsibility whatsoever for any resulting losses or liabilities.
No. You must always remain the beneficial owner of your ISA investments. They may not be used as security for a loan.
In January, April, July and October each year, we provide you with a statement and valuation on Client Web Access (CWA). You will be able to view your valuations on line as often as you wish once you have registered to do so. If you are not registered for CWA, simply email your account numbers to us at compliancepilling.co.uk and we will send you instructions and a password. These are also available in paper form by request.
Simply send an email detailing the account name and number to compliancepilling.co.uk requesting to join CWA. You will be issued an exclusive login and password.
Yes. We can arrange this but, to keep down costs, we suggest you get these from the Company Registrars direct. They are also usually available on the company websites.
Yes. By negotiation, we can arrange for you to attend company meetings, to vote and to receive any other relevant information that is sent to share or unitholders direct.
Yes. We regret that if your plan fails the provisions of the JISA Regulations, it may have to be cancelled (“voided”) and we will tell you as soon as possible. However, this is a rare occurrence and we make every effort to ensure this does not happen.
Yes. All our JISAs are administered “in-house” by our own staff and we never delegate our JISA role to a third party.
Yes, upon receipt of your new JISA providers signed transfer form we will transfer either a Managed or Execution Only JISA to the new manager of your choice. However we will only transfer a Managed JISA in the form of cash so the investment(s) will have to be sold (see Charges).
We reserve the right to sell or realise any investment which we are holding (or entitled to receive) on your behalf in order to meet any liabilities you may have incurred to us. Our right to sell any such investment will arise immediately upon default by you in making payment of any amount due to us and in that event we are entitled to sell or dispose of all or any part of such investment (whether these be investments in respect of which the default arises or any other investments for the time being held by us or which we are entitled to receive on your behalf) after expiry of any statutory notice period.
We shall not be liable to you in respect of any loss arising nor in respect of any choice made by us in selecting the investments to be sold. We will apply the proceeds of sale (net of costs) in or towards discharge of your liabilities to us and will account to you for the balance. In the event that such proceeds are insufficient to cover the whole of your liabilities to us, you remain liable for the balance.
We shall be entitled, without further reference to you, to buy any investment in the market to close any short position created by you and then, subject to any statutory notice period, sell or dispose of any other investments held by us or which we are entitled to receive on your behalf to satisfy in whole or in part the sums due on settlement of any such purchase and its associated costs. We shall not be responsible for advising you about the investment merits of any transactions effected by us pursuant to this section which in all cases will be treated as execution only deals.