If your investments fall in value, you could lose money. Tax allowances and the benefits of tax-efficient accounts could change.
Buy and sell a wide range of investments for any child, with no annual limit.
£1.80 per month and a dealing option to suit you.
You’re in control of choosing, buying and selling the child’s investments.
Invest as much as you like and withdraw money whenever you want (excl. Bare Trust).
Shares, funds, investment trusts, bonds, gilts, ETFs and more.
Junior Investment Accounts can be set up in two ways: Designated Account or Bare Trust Agreement. This allows you to consider your personal tax and legal circumstances.
Bare Trust Agreement
|Beneficial ownership||Investments and cash are held in your name, but earmarked for the child.||Investments and cash are held in trust for the child, with you as the trustee.|
|Withdrawals||Withdraw money anytime and choose when to give it to the child.||No withdrawals before the child reaches 18 (16 in Scotland), at which point they are automatically given control of the account.|
|Tax considerations||You are liable for any income tax or Capital Gains Tax. The account is included in your estate for inheritance tax purposes.||The child's Capital Gains Tax allowance is used. Parents are liable for income tax on any income above £100 per parent. The trust is excluded from your estate for inheritance tax purposes.|
Junior Investment Account Costs
We charge fixed account fees (which don’t grow as your investments do) and offer a choice of dealing options to keep your dealing costs down.
Standard dealing option
I usually deal less than £750 or occasionally
Frequent dealing option
I deal more than £750 frequently or have a lump sum to invest
|Fixed account admin fee||£1.80 per month||£1.80 per month|
|Dealing option fee||-||£24 per quarter|
|Dealing commission||£7.50 per deal for trades less than £750, 1% for £750 and above||£7.50 per deal|
|Dealing commission for phone/post/email from 23 July 2018||£20 per deal for trades less than £2,000, 1% for £2,000 and above||£20 per deal|
|Stamp Duty Levy||0.5% on the purchase of UK shares (excluding AIM and other recognised growth markets). Other rates may apply to non-UK shares.|
|PTM Levy||£1 on transactions over £10,000|
|Foreign Financial Transaction Tax||Tax Payable on the purchase of specific European shares (charge varies by country)|
|3-5 day transfers||Free|
|Same day transfer||£25|
|Overseas||£50 (restrictions apply)|
|Regular investing||0.5% (min. £1)|
|Statements & contract notes by post rather than email||£1.20 per month (increasing to £2.40 per month from 23rd July 2018)|
|Transfer to another provider||£25 per account|
|Re-registration to certificate||£25 per certificate|
|Bounced cheque or unpaid Direct Debit||£25|
|Deceased customer account administration||£50 (increasing to £100 from 23 July 2018)|
Costs and charges illustration
To give you a feel for the costs involved, our cost sheet includes an illustration of costs you will pay, based on how much you invest and what type of investments you choose.
Your account admin fee (and postal statements & contract notes fee if chosen) will be collected from your account on the 26th of each month, or the next business day. If you’ve chosen our frequent dealing option, the first payment will be collected from your account when opened and quarterly thereafter. Dealing commission, regular investing fees and other fees will be taken from your account as part of each transaction.
Gross interest on any cash you hold will be credited to your account quarterly at the Bank of Scotland base rate, minus 3.5% (min. 0%). We may retain the difference between the interest paid to you and the interest we are able to earn, as permitted by The Financial Conduct Authority.
As one of the UK’s leading stockbrokers, we are authorised and regulated by the Financial Conduct Authority (FCA).
Our comprehensive range of investment tips and tools make it easy to choose and manage your investments.
We’re proud to be regularly recognised by industry awards for our outstanding customer service.