Junior Stocks & Shares ISA

The Halifax Junior Stocks & Shares ISA gives you the opportunity to invest in a tax-efficient manner for the benefit of your child. The proceeds can be accessed by the child when they reach 18 years of age, and can be used for university fees, starting on the property ladder or whatever they have in mind. For a child under 16, Junior ISAs can only be opened by a parent or guardian. If 16 or 17, they can open Junior ISAs in their own name.

The Halifax Junior Stocks & Shares ISA invests in the Scottish Widows UK Tracker Fund that provides you with a medium to long-term tax-efficient investment for your child. It gives you access to the performance of a wide variety of UK companies listed on the FTSE 100 index, spreading the risk of funds you invest for your child across a range of industries. The FTSE 100 is an index of leading shares, based on market value, of the largest 100 companies listed on the London Stock Exchange.

It’s important that you understand the risks associated with investing in this fund before making an application. The UK Tracker Fund is categorised as an adventurous investment. Adventurous investments carry a much higher risk of loss but with the potential for higher growth over the medium to long-term. They may be subject to a considerable level of fluctuation in capital value and do not offer any guarantees. Your child may get back less than originally invested.

The funds are invested on behalf of the child and are transferred into a suitable adult ISA in their name on their 18th birthday. They can then choose to keep on investing or withdraw the funds.

You can invest in the Halifax Junior Stocks & Shares ISA with a single lump sum payment of at least £20 or a regular payment of at least £20 per month. Read more on how much you can invest.

Remember, the value of an investment can go down as well as up and your child may get back less than originally invested.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

With the Junior Stocks & Shares ISA, you can:

• Invest up to £3,720 for the 2013/2014 tax year, less any amount you may have paid into a Junior Cash ISA in the same tax year for the same child.
• Invest a lump sum of at least £20 or set up a regular direct debit payment of at least £20 per month.
• Payments will be made by Direct Debit or Cheque with your application.

Transfer funds between your Junior Stocks & Shares ISA and Junior Cash ISA accounts through the ISA transfer process (subject to minimum investment limits). Please download a Junior Stocks & Shares ISA transfer form to transfer funds to this investment, or contact your new Junior ISA provider for a transfer form.

The Junior Stocks & Shares ISA may be suitable for those looking to invest for at least five years.

Combined payments into your child's Junior Cash ISA and Junior Stocks & Shares ISA must not exceed £3,720.  This is the Junior ISA allowance for the 2013/2014 tax year.  For example, you can have £1,860 in the Junior Stocks & Shares ISA and £1,860 in a Junior Cash ISA. Additional investments can be made (up to the annual limit).  We will only accept payments from the registered contact.  If other people wish to make contributions they should go via the registered contact.

Charges

• No initial charge. 
• A competitive Annual Management Charge of 1%.

Remember, the value of an investment can go down as well as up and your child may get back less than originally invested.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

May be right for you and your child if you are:

• Comfortable investing in a Scottish Widows UK Tracker Fund and that the value fluctuates over the life of the investment.
• Comfortable with the funds being held in the child's name. On the child's 18th birthday, they will gain full control of the funds. In exceptional circumstances the funds may be released earlier.
• Comfortable that the funds can only be moved between the Junior Cash ISA and the Junior Stocks & Shares ISA. Funds cannot be transferred into any other type of account until the child's 18th birthday.
• Prepared and able to invest for a period of at least five years.

May not be right for you and your child if:

• You cannot invest for the suggested time period of at least five years.
• You're not comfortable investing in a product with an adventurous risk profile which has a high level of capital fluctuation, where your child may receive back less than originally invested.
• You're not comfortable investing without financial advice.

Please be aware you cannot invest in the Junior Stocks & Shares ISA if your child has or was eligible for a Child Trust Fund.

On the child’s 18th birthday, the funds invested in the Junior Stocks & Shares ISA will automatically be transferred into a comparable adult Stocks & Shares ISA.

Remember, the value of an investment can go down as well as up and your child may get back less than originally invested.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

Important information

Before making an application, we strongly recommend you read the following important documents to ensure you fully understand the product and risks associated with the choice you are making:

• Key Investor Information Document (PDF)
• Supplementary Investor Information Document (PDF)
• Terms and Conditions (PDF)
• Information about our services and costs (PDF)
• Order handling policy (PDF)
• Conflict of interest policy (PDF)

Download and freepost the application

Download the application, print it out and send it to the freepost address.

Once, completed post the documents to us at (no stamp required):
Freepost RRXJ - EACH - JBTC
Halifax Share Dealing Limited
Lovell Park Road
Leeds
LS1 1NS

Want to transfer an existing Junior ISA?

• Junior ISA Stocks & Shares transfer form (pdf)
• Junior ISA Cash transfer form (pdf)

If you are unable to print the documents, simply call Halifax Share Dealing on 08457 22 55 25 and we'll be happy to post them to you. Lines are open Monday - Friday 8am - 9:15pm, Saturday 9am - 1pm.

Cancelling your investment
You can cancel your investment up to 30 days from when you receive your Junior Stocks & Shares ISA confirmation in the post.  If you decide to cancel before you have invested your subscription we’ll give you your money back.  If you have invested your subscription we'll give you your money back less any fall, or plus any rise, in the investment value. This amount is calculated using the next price released after we receive your written cancellation instructions. You may not get back what you paid in.

Please take care to make sure that the details that you provide are correct so there are no delays in opening your Junior Stocks & Shares ISA.