At present a child can hold a Junior Individual Savings Account (JISA) until the day they turn 18 – the annual allowance is currently £9,000. On their 18th birthday, the child can open an adult stocks and shares ISA – the annual subscription is currently £20,000. Simple.

The interesting part

A child can open an adult cash ISA when they turn 16, benefiting from the full £20,000 adult allowance, a child can also hold an adult cash ISA alongside a JISA whilst they are under 18. So, in one tax year, a total of £29,000 can be paid into their ISAs. This can be repeated in the tax years they turn 17 and 18, meaning contributions totalling £87,000 can be made in under three years.

It’s a wrap

If you’re looking to put money aside for your children or grandchildren, there are some interesting tax wrapper opportunities available to you.