A Junior ISA can be opened by, or on behalf of, individuals aged under 18 who live in the UK, who are not entitled to a Child Trust Fund account. Up to £3,600 can be deposited in a Junior ISA in each of the tax years: 2011/12 and 2012/13. However, the funds cannot be withdrawn until the account-holder reaches age 18, or becomes terminally ill. If you contribute to your child’s Junior ISA the income from the account will not be taxed on you, even if that income exceeds £100 per year. This tax exemption for funds provided by parents does not apply to income from cash ISAs, which can be opened by 16 and 17 year olds.

CLICK HERE - Govt information re Junior ISA

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