The government has launched a consultation on allowing the transfer of existing savings from Child Trust Fund accounts into Junior ISAs.
This follows the Chancellor’s announcement at Budget 2013 that the government would consider the position of existing Child Trust Fund accounts.
The government is committed to supporting savings and ensuring that families have access to suitable, tax-advantaged savings products which allow them to save for their children’s futures in a clear and simple way.
Speaking about the consultation, Economic Secretary to the Treasury, Sajid Javid said:
“The government wants to support parents by ensuring that there are clear and simple ways to save for all children. That is why we introduced Junior ISAs in 2011 and why, in the interests of fairness, we are today consulting on how to give the 6.3 million children who have a Child Trust Fund the option to open one too.”
As well as looking at whether the transfer from Child Trust Funds to Junior ISAs should be allowed and on what basis, the consultation also proposes that voluntary transfers from a Child Trust Fund to a Junior ISA should be allowed if requested by a parent, or guardian of the account.
There are proposals within the consultation that look at whether the government should provide scope for further intervention at a later date, if necessary. This, for example would work to address any risks to the long-term viability of the Child Trust Fund. One option for further intervention being kept under review is the merging of Child Trust Funds into Junior ISAs.
Photo by Pewari on Flickr. Used under Creative Commons.