NISAs & JISAs

What is a NISA?

A New Individual Savings Account (NISA) is not a product itself but rather a tax-efficient ‘wrapper’, allowing individuals to save by way of regular or single investment amounts, each tax year, with no personal Income Tax or Capital Gains Tax (CGT) incurred on the income and/or profits received.

NISAs replaced the earlier tax efficient wrapper known as Personal Equity Plans (PEPs), and any existing PEPs have now been reclassified as stocks and shares NISAs.

What is a JISA?

A JISA is the junior version of a NISA and allows parents to save for their children by way of regular or single investment amounts, each tax year, with no personal Income Tax or Capital Gains Tax (CGT) incurred on the income and/or profits received.

JISAs have been developed from pre-existing adult NISAs and so share a lot of common features and have effectively replaced, and are an alternative to, Child Trust Funds.


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