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This publication is available at https://www.gov.uk/government/publications/increasing-the-junior-individual-savings-account-subscription-limit-for-2019-to-2020/increasing-the-junior-individual-savings-account-subscription-limit-for-2019-to-2020
Who is likely to be affected
Children with a Junior Individual Savings Account (ISA).
Banks, building societies and other financial institutions who offer Junior ISAs.
General description of the measure
The measure increases the amount that can be saved annually into a Junior ISA from £4,260 to £4,368 from 6 April 2019. Interest and gains received on money saved in an ISA is tax-free.
The measure supports savings for children.
Background to the measure
At Autumn Budget 2018, the government announced that the annual subscription limit for Junior ISAs would increase to £4,368 from 6 April 2019.
Around 907,000 Junior ISAs received subscriptions in 2017 to 2018.
The measure will have effect from 6 April 2019.
The account rules for ISA and Junior ISAs are set out in the ISA Regulations 1998 (SI 1998/1870) (ISA Regulations), which are made under powers in the:
- Income Tax (Trading and Other Income) Act 2005
- Taxation of Chargeable Gains Act 1992
The ISA Regulations set out the annual subscription limit for Junior ISA.
The ISA Regulations will be amended by the ISA (Amendment) Regulations 2019 to increase the amount that can be paid into a Junior ISA each year from £4,260 to £4,368.
Summary of impacts
Exchequer impact (£m)
|2018 to 2019||2019 to 2020||2020 to 2021||2021 to 2022||2022 to 2023||2023 to 2024|
The measure is expected to have a negligible impact on the Exchequer.
The measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
The measure will increase the amount that can be saved into a Junior ISA.
The measure is not expected to impact on family formation, stability or breakdown.
It is not anticipated that the measure will impact adversely on any groups with protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on ISA providers. One off costs include familiarisation with the new limit and adjusting their accounting systems to take account of the new Junior ISA subscription limit from 6 April 2019. It is not expected that there will be any on-going costs. There is no impact on civil society organisations.
Operational impact (£m) (HMRC or other)
The overall additional costs for HMRC in implementing these changes are anticipated to be negligible.
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be kept under review through communication with affected taxpayer and provider groups.
If you have any questions about this change, contact Tim Roscamp on telephone: 03000 512336, or email: email@example.com.
John Glen MP, Economic Secretary to the Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.