How Does the Junior ISA Allowance Work in the UK?
Updated:
In the 2026-27 tax year the Junior ISA limit is £9,000 per child, and gov.uk says anyone can pay into a Junior ISA as long as the total paid in does not go over that limit. HMRC has said the limit will stay at that level until April 2031. The money belongs to the child, who can take control of the account at 16 but cannot withdraw it until they turn 18.
The site's rules data was last checked against gov.uk on 26 September 2026. Figures typed in this guide may not yet reflect a later change, and the descriptions of gov.uk pages are summaries that may also lag. The current figures are on the ISA rules at a glance page. General information only, not financial advice.
What is the Junior ISA allowance and how does it work?
The Junior ISA allowance (sometimes called the JISA limit) is £9,000 per child per tax year in 2026-27. HMRC has said it will stay at that level until April 2031 (HMRC tax-free savings newsletter 19). The tax year runs from 6 April to 5 April, like the adult ISA tax year. gov.uk describes no carry forward of an unused allowance, so this guide does not assume that an unused part is added to a later year. For the current limits and dates in one place, see ISA rules at a glance.
The Junior ISA limit is set separately from the adult ISA allowance of £20,000. A parent can therefore pay into their own ISA and into a child's Junior ISA in the same tax year, each within its own limit.
The GOV.UK guide to Junior ISAs says parents or guardians with parental responsibility can open a Junior ISA and manage the account, but the money belongs to the child. It also says anyone can pay money into a Junior ISA, but the total paid in cannot go over the limit for the tax year. So grandparents, relatives and friends can all pay in, with every source counted together against the one £9,000 limit.
The guide says you will not pay tax on interest on cash saved in a cash Junior ISA, or on capital growth or dividends in a stocks and shares Junior ISA.
Who is eligible for a Junior ISA?
gov.uk says the child must be under 18 and living in the UK. A child living outside the UK can qualify only in the limited case where the parent is a Crown servant and the child depends on them for care.
A child also cannot have a Child Trust Fund (CTF) alongside a Junior ISA. gov.uk says "You cannot have a Child Trust Fund as well as a Junior ISA", and that if you open a Junior ISA you ask the provider to transfer the trust fund into it (GOV.UK: Child Trust Funds). The same page describes Child Trust Funds as for children born between 1 September 2002 and 2 January 2011, so a child born in that period may already have one.
The child can take control of the account at 16, though they cannot withdraw the money until they turn 18.
What is the difference between a Cash Junior ISA and a Stocks and Shares Junior ISA?
Like adult ISAs, the Junior ISA comes in two types: Cash and Stocks and Shares.
Cash Junior ISA
This works like a savings account, paying a fixed or variable rate of interest. It is lower risk than investing, though the money is still subject to the provider's terms. FSCS deposit protection is up to £120,000 per eligible person, per bank, building society or credit union. The FSCS pages read for this guide do not name ISAs, so ask your provider or FSCS whether a given ISA is covered. Over a period as long as 18 years, interest on cash may not keep pace with inflation, depending on rates.
Stocks and Shares Junior ISA
This invests the child's money in funds, shares, bonds or other assets. Over a long period such as 18 years, stocks and shares have historically returned more than cash, although past performance is no guarantee of future returns, and the value of investments can fall as well as rise.
gov.uk says a child can have one cash Junior ISA and one stocks and shares Junior ISA, one or both, so the limit is shared between them. For example, £2,000 could go into a Cash Junior ISA and £6,000 into a Stocks and Shares Junior ISA, a total within the limit. These are assumed amounts, not suggestions.
A worked example: what regular payments can become
This is an illustration using assumed figures. A parent opens a Stocks and Shares Junior ISA on the day a child is born and pays in £6,000 a year, which is less than the yearly limit, for 18 years. The figures assume one payment at the end of each year, and ignore charges and inflation.
- At an assumed 5% annual return (not a forecast or a guarantee), total paid in is £108,000 and the balance at the end is about £168,800.
- At an assumed 3% annual return, the same payments give about £140,500.
- For a family paying £300 a month (£3,600 a year) at an assumed 5%, total paid in is £64,800 and the balance is about £101,300.
Real returns vary from year to year and can be negative, so the actual result can be higher or lower. The ISA Calculator can project different contribution levels and growth rates without signing up, and the Junior ISA calculator applies the Junior ISA limit for each tax year.
The example shows how much of a long-term balance can come from time and regular payments, because earlier payments have more years to compound.
How does the allowance sit alongside other savings?
The Junior ISA allowance sits alongside other ways families save for children. Premium Bonds, for instance, can be held for a child, and NS&I sets a maximum holding (£50,000); check nsandi.com for the current rules. Their prize rates are variable.
Some parents save into their own ISA with the intention of gifting money to a child later. That uses the parent's own £20,000 allowance rather than the child's separate £9,000.
The GOV.UK Junior ISA guide read does not mention a government top-up on Junior ISA payments. By contrast, the Lifetime ISA has a 25% government bonus with its own restrictions. The Lifetime ISA calculator shows how that bonus works.
What does a Junior ISA not guarantee or protect against?
- Deposit protection is not protection against investment falls. FSCS deposit protection is up to £120,000 per eligible person, per bank, building society or credit union. The FSCS pages read for this guide do not name ISAs, so ask your provider or FSCS whether a given ISA is covered. A Stocks and Shares Junior ISA is not a deposit account: if the underlying investments fall, the amount returned can be less than the amount paid in.
- No government bonus is described on the pages read. The tax treatment is the benefit that gov.uk describes.
- Access is limited. gov.uk says money cannot be withdrawn until the child turns 18. The registered contact can take money out early if the child is terminally ill, and if the child dies the money is paid to whoever inherits their estate. At 18 the Junior ISA automatically turns into an adult ISA and the child can then withdraw any money, with no parental override.
- Gifts can have Inheritance Tax rules. A payment into a child's account may count as a gift, and this guide does not set out those rules; check gov.uk for the position.
- Paying in too much. Total payments from all sources must stay within the £9,000 limit, so the provider can say what happens if more is paid in.
What to check about a Junior ISA
- Is the account open? A Junior ISA has to be open before anyone can pay into it.
- How much has been paid in this tax year, across all sources? If several relatives pay in, who is tracking the total against the £9,000 limit?
- How is the money split between Cash and Stocks and Shares? This reflects risk and time horizon, and there is no required split.
- What does the provider charge? Ongoing fees reduce returns over a period as long as 18 years.
- Is there a Child Trust Fund? For a child born in the CTF period, it is worth checking before trying to open a Junior ISA.
- Can the provider be changed? gov.uk says the registered contact can change the account provider by contacting the current provider.
- What happens at 18? The account becomes an adult ISA that the child controls, so whether the child knows about it is a family question.
For multi-year scenarios, the Advanced ISA Planner models contributions over several years, with a single one-off purchase and no subscription.
Frequently asked questions
Can relatives and friends add to the yearly Junior ISA allowance?
gov.uk says anyone can pay money into a Junior ISA, but the total paid in cannot go over the limit for the tax year. The limit is shared across all of the child's Junior ISAs.
Can a Child Trust Fund be moved into a Junior ISA?
Yes. gov.uk says you cannot have a Junior ISA as well as a Child Trust Fund, and that if you open a Junior ISA you ask the provider to transfer the trust fund into it.
What happens to a Junior ISA when the child turns 18?
gov.uk says Junior ISAs automatically turn into an adult ISA when the child turns 18, and the child can then withdraw any money.
This guide does not constitute financial advice. Your personal situation, tax position, and savings goals may mean different strategies are appropriate. Consider speaking to a regulated financial adviser if you are uncertain.
