Why choose a Unit Trust Junior ISA?
Offering the chance to invest in a range of managed funds, a Unit Trust Junior ISA from Wesleyan Unit Trust Managers (WUTM) can help you give your children a head-start on their savings.
- Save up to £9,000 in the 2022/23 tax year for each of your children, without affecting your own ISA allowance
- Pay no income tax or capital gains tax on your investment returns
- Choose from six funds to match your risk profile
- Lock away the investment until your children turn 18
- Leave your investment in the hands of our award-winning Fund Managers
Dealing costs and ongoing charges will apply. When you take advice from a Specialist Financial Adviser from Wesleyan Financial Services, an initial advice charge will also apply.
Got a question about the Junior ISA?
Give us a call on 0330 123 3813. We're open Monday to Friday, 9am to 5pm.
Want to transfer in from an existing Junior ISA?
Book an appointment with a Specialist Financial Adviser from Wesleyan Financial Services (initial advice charge applies). Or you can download, complete and send us the transfer form below:
Frequently asked questions
Is a Unit Trust Junior ISA a stocks and shares ISA?
Yes, it’s a stocks and shares junior ISA, invested in our Unit Trust funds. Unit Trust funds are split into a large number of equal units, and those units are effectively what you’re buying when you pay into the ISA.
The value of the units can then rise or fall depending on the performance of the fund’s underlying assets.
Who can open a Unit Trust Junior ISA?
To open a Junior ISA on behalf of your child, you’ll need to be the child’s parent or legal guardian, and you’ll need to be a UK resident for tax purposes. The child must be under 18.
The JISA is initially managed by the person who applies for the account - known as the ‘registered contact’. The child can take over the management of the account from age 16, though they still won’t be able to access the funds until their 18th birthday.
How much can I pay into a Unit Trust Junior ISA?
Each tax year (6th April to 5th April), there’s a certain amount of money you’re allowed to save into Junior ISAs. For tax year 2022/2023, that allowance is £9,000.
Just be aware that tax rules for ISAs can and do change, so the allowance may vary from year to year. If you don’t use your full allowance during the tax year, you won’t be able to carry any over.
Does paying into a Junior ISA affect my own adult ISA allowance?
No, not at all. Every adult has a £20,000 tax-free ISA allowance for tax year 2022/2023, and this is entirely separate from the £9,000 Junior ISA allowance. In other words, you can save £9,000 into your child’s Junior ISA, and still put the full £20,000 into your own ISAs in the same tax year.
The child also gets their own ‘adult’ ISA allowance from 16, which is also separate from (and unaffected by) the Junior ISA allowance.
What’s the minimum amount I need to open a Junior ISA?You can open your account with a one-off payment of just £1,000, a monthly subscription from £50 per month, or a combination of the two. Thereafter, you can top up your account at any time, up to the maximum junior ISA allowance.
Can I withdraw money from a Junior ISA?
Except for in very exceptional circumstances, no money can be taken out of a Junior ISA until the child turns 18. So, if you open the account when your children are young, it’s a long-term investment with plenty of opportunity for growth.
Note that while you can’t withdraw from the ISA, you can transfer it to another provider at any time. Similarly, you can transfer to a WUTM Unit Trust Junior ISA from another provider.
At the moment, transfers must be advised by a Specialist Financial Adviser from Wesleyan Financial Services. An initial advice charge will therefore apply to the sum you transfer to us.
What happens when my child reaches 18?
Once your child turns 18, the account will automatically convert to an adult version of our Unit Trust ISA, held in their own name.
They’ll be able to take the money out without any exit fees. Or they can continue to save and invest with an increased adult ISA allowance of £20,000 per tax year (bear in mind ISA allowances can and do change).
Can I open a cash ISA for my child too?
Yes, you can hold a cash junior ISA for your child as well as a stocks and shares junior ISA, and you can pay into one of each type in the same tax year. The overall limit remains £9,000 though.
If you’re interested in spreading your child’s ISA allowance this way, you may want to take a look at the Junior Cash ISA from Wesleyan Bank.
Things to know before you apply
When you invest in a Unit Trust Junior ISA, there are some management and dealing costs (circa 1%) to pay. These costs are shown as Ongoing Charge Figures (OCFs). The latest OCFs for each fund can be found in the Key Investor Information Documents in our fund prices centre.
If you opt in to the Ongoing Advice Service (OAS) provided by Wesleyan Financial Services, please note an additional 0.5% will be added to the OCF charge.
There is also an initial 3% advice charge for advised applications or transfers, to cover the cost of the advice. We (WUTM) will collect this charge on behalf of Wesleyan Financial Services (WFS) and pay it to them.
ISA and tax rules summary
The WUTM Unit Trust Junior ISA is a stocks and shares junior ISA. You can invest in one stocks and shares junior ISA and one cash junior ISA on behalf of your children in the same tax year. In total, the maximum amount you can save in Junior ISAs in the 2022/2023 tax year is £9,000.
You’ll pay no personal income tax or capital gains tax on your investment returns from the WUTM Unit Trust Junior ISA.
This is based on current understanding of legislation and tax treatment, which can change in the future.
Before you apply to open a Unit Trust Junior ISA for your children, please read the following documents:
Please also read the latest Key Investor Information Document (KIIDs) for any fund(s) you’re considering investing in. These can be found in our fund prices centre.
If you are already investing with us and have opted into the Ongoing Advice Service (OAS) provided by Wesleyan Financial Services, the appropriate 'B' unit class KIIDs are available through the WUTM Investor Portal.