What is the Junior ISA allowance for 2026/27?

Full answer

The Junior Individual Savings Account (JISA) is a long-term, tax-free savings account for children under 18 who are UK residents. For the 2026/27 tax year, the annual JISA subscription limit is GBP 9,000 per child, unchanged from previous years. Eligibility: any UK-resident child under 18 who does not hold a Child Trust Fund (CTF) account can have a JISA. Children born between 1 September 2002 and 2 January 2011 may hold a CTF -- these must be transferred to a JISA before a JISA can be opened (the transfer can be done any time). Parents or guardians must open the JISA on behalf of a child under 16; children aged 16-17 can open and manage their own JISA. Two types of JISA: (1) Cash JISA -- savings account paying interest, tax-free; (2) Stocks and Shares JISA -- invested in funds, shares, and bonds, with returns free of income tax and CGT. You can hold one of each type simultaneously. The GBP 9,000 annual allowance can be split between them in any proportion. You cannot hold two Cash JISAs or two Stocks and Shares JISAs at the same time. Who can contribute: anyone can pay into a child's JISA -- parents, grandparents, other relatives, family friends. The money belongs to the child from the moment it is paid in. The annual limit applies to the total contributions across all contributors and both types of JISA. Withdrawal restrictions: the funds are locked in until the child's 18th birthday. No withdrawals are permitted before age 18 except in cases of terminal illness (where early access is permitted under HMRC rules) or on the child's death (where the funds would form part of the estate or be distributed to parents). This lock-in makes JISAs unsuitable if you need to access the money before the child turns 18. At age 18: the JISA automatically converts to an adult ISA (it does not close). The child (now adult) gains full access to the funds and can withdraw, reinvest, or transfer to any ISA provider. From that point, they also get the adult ISA allowance (GBP 20,000 for 2026/27) in addition. Separate from adult ISA allowance: the GBP 9,000 JISA allowance is entirely separate from the GBP 20,000 adult ISA allowance. A parent can save GBP 20,000 in their own ISA AND contribute GBP 9,000 to a child's JISA in the same tax year. Investment considerations: for a long-term investment (potentially 18 years for a newborn), a Stocks and Shares JISA is commonly used to take advantage of potential long-term equity growth, accepting short-term volatility. Regular contributions (even small monthly amounts) benefit from pound-cost averaging. Always consider risk, charges, and fund selection carefully. Providers: most major banks, building societies, and investment platforms offer JISAs. Compare annual management charges (AMCs) and investment options. Charges on Stocks and Shares JISAs can significantly reduce returns over 18 years -- even a 0.5% annual charge difference compounds to a meaningful amount.

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