Individual Savings Accounts: Children
The question
To ask the Chancellor of the Exchequer, if she will review eligibility rules to allow grandparents to take out share based ISAs for grandchildren.
Answered by Emma Reynolds
To ensure that the Junior Individual Savings Accounts (JISA) regime remains simple and sustainable, HMRC specify who can open and manage an account to prevent more than one JISA of each type (cash or stocks and shares) being opened in error. It also ensures that there is a single point of contact for the giving of instructions. Given the nature of the role, the ISA rules require this to be someone with parental responsibility for the child. A grandparent who does not have parental responsibility is therefore unable to open or manage a Junior ISA on behalf of their grandchild but can add funds to the account, up to the value of £9,000 a year.
The Government continues to keep all aspects of savings policy under review.
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