Cash Junior ISA (2nd issue)

Junior ISA stands for Junior Individual Savings Account. Junior ISAs were introduced on 1 November 2011. A Junior ISA is a type of ISA available to eligible children in respect of which instructions are given by a ‘registered contract’.

The information presented is based on our understanding of current law and HM Revenue & Customs practice at the time of publication. There are no guarantees that the favourable tax treatment on this account will be maintained. The Government is responsible for the tax treatment. Future changes in legislation and tax practice could affect this information. If you require further information about ISAs you can obtain a fact sheet from the Building Societies Association (BSA) website www.bsa.org.uk called ‘Individual Savings Accounts, incorporating New ISAs’.

Parental Responsibility

A person with parental responsibility is defined as the child’s natural parent, a person who has legally adopted the child, a person who has been granted parental responsibility by the Courts or a Local Authority that has parental responsibility for a child in its care.

An account can still be opened for a child by a person with parental responsibility, even if the child is over 16, and therefore entitled to apply for an account themselves.

What ISAs are available?

There are two types of Junior ISA:
• a cash Junior ISA
• a stocks and shares Junior ISA

Please note: Mansfield Building Society offers a cash Junior ISA only.

You can hold up to one cash and one stocks and shares Junior ISA at a time. Unlike ‘adult’ ISAs where the investor can open and subscribe to new ISAs in each tax year, a child can only hold up to two Junior ISAs (no more than one of each type) throughout their childhood (although between the ages of 16 and 18 they can hold one of each type of Junior ISA plus an ‘adult’ cash ISA).

Deciding whether to invest in stocks and shares should be determined by a number of factors including your attitude to risk and the level of the stock market because the value of stocks and shares investment can go down as well as up. Also, if you are not a higher rate taxpayer, or likely to make significant capital gains chargeable to tax, there are no tax benefits from holding UK equity shares within a ISA.

By opening a cash Junior ISA you will limit your eligibility for savings in equities through a stocks and shares Junior ISA.

The tax year starts on 6 April and finishes on 5 April in the following year.

Can I transfer my cash Junior ISA to another ISA manager?

Yes. The transfer must be arranged by the new Junior ISA Manager directly with us. Note that Junior ISA Managers are not obliged to accept transfers.

If the transfer is to be of current year’s subscriptions, the whole of those subscriptions must be transferred. Funds in a ISA from previous years investments may be transferred from one Manager to another in whole or in part.

To transfer your Junior ISA, you will need to complete a transfer application with the new ISA Manager.

The cash and information will be sent to the new Manager within 5 working days. This will be calculated from the date we receive the transfer request. Interest will be calculated up to the day before the date of the transfer.

Child’s 18th Birthday

On the child’s 18th birthday the legal title to all investments in the cash Junior ISA must be transferred to the child unless the child directs otherwise. The account ceases to be a cash Junior ISA on that day, but any investments held should remain in a tax free wrapper.

We will contact the account holder (i.e. the child) prior to their 18th birthday to confirm withdrawal and re-investment options.

The investments held in the cash Junior ISA at age 18 can continue to benefit from the tax advantages of the cash Junior ISA but further subscriptions to an ‘adult’ ISA that was a Junior ISA cannot be accepted until the (former) child:
• notifies the ISA manager of their National Insurance Number (NINO) if one exists;
• provides the details required by the ISA declaration which includes confirmation of being resident in the UK; and
• authorises the manager to hold the ISA investments and make claims on their behalf

Where this information/authority is not obtained, or where the account holder is not eligible to subscribe to an ‘adult’ ISA, no further subscriptions will be accepted.

The detailed rules for Junior ISAs are contained within the Individual Savings Account Regulations 1998 No 1870 and The Individual Savings Account (Amendment) Regulations 2024.

• The account must at all times be managed in accordance with the above Individual Savings Account Regulations by an account manager and under terms agreed in a recorded form between the account manager and the account investor or registered contact.
• The account opening date will be the date on which both the correctly completed application form and initial subscription are accepted by the Society.
• The account may not be held on behalf of another person other than the account holder.
• The ISA manager will satisfy himself that any person to whom he delegates any of his functions or responsibilities under the terms agreed with the investor is competent to carry out those functions and responsibilities.
• The ISA manager must notify the investor if, by reason of any failure to satisfy the provisions of the ISA Regulations, an ISA has, or will, become void.
• The account holder must be resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or married to, or in a civil partnership with a person who performs such duties. The account holder must inform Mansfield Building Society if they cease to be so resident or perform such duties or be married to, or in a civil partnership with, a person who performs such duties.

1. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added to each year. AERs on the Monthly Income accounts assume interest is added to the account each month although in practice the option to have interest added in this way is not available.

2. The gross rate is the contractual rate of interest payable without tax taken off.
If separate AER/Gross rates are not quoted, both rates are identical.

^Tax free means you won’t pay UK tax on any income or capital gains your ISA makes.

Our savings accounts are exclusively available to UK Residents only.

These account details apply to personal investors only unless stated in the detailed information.