What Happens to a Junior ISA at 18?
Navigate the pivotal transition of a Junior ISA at 18. Discover how financial control evolves and the choices available for these tax-advantaged funds.
A Junior Individual Savings Account (JISA) is a dedicated long-term savings and investment vehicle designed for children in the United Kingdom, providing a tax-advantaged environment for accumulated funds. The 18th birthday of the account holder marks a significant and transformative milestone for these accounts, as the funds transition into the individual’s full control.
Automatic Conversion to an Adult ISA
Upon the account holder’s 18th birthday, a Junior ISA automatically converts into an adult Individual Savings Account (ISA). This transition ensures that the accumulated funds continue to benefit from the tax-free wrapper that characterized the JISA. The individual gains complete control over the account on this date. Account providers typically communicate this impending transition to the JISA holder, often a month before their 18th birthday, through letters or online notifications.
The converted account usually defaults to a Cash ISA if the new adult account holder does not provide specific instructions to the provider. While a parent or guardian manages the JISA until the child turns 16, the child can take over management of the account from age 16, though withdrawals remain restricted until they reach 18.
Accessing and Managing the Funds
Once a Junior ISA has converted to an adult ISA, the now 18-year-old account holder gains full access to the funds. They can choose to withdraw the money, either partially or in full, for various purposes. Withdrawal procedures typically involve online requests, mobile application interfaces, or direct contact with the ISA provider, often requiring identification verification.
Beyond immediate withdrawal, the account holder has several options for managing their converted ISA. They can choose to transfer the funds to a different type of adult ISA, such as a Stocks and Shares ISA for investment growth, or an Innovative Finance ISA. Transfers can also be made to a different ISA provider without counting against the annual ISA allowance. The individual can continue contributing to the adult ISA and managing investments through the provider’s platforms.
Key Tax Rules
The funds held within an adult ISA, converted from a Junior ISA, continue to benefit from a favorable tax status. Any income generated, such as interest or dividends, and any capital gains realized from investments within the ISA wrapper, remain exempt from UK income tax and capital gains tax.
The annual ISA allowance, which is separate from the Junior ISA allowance, applies to new contributions made to the converted adult ISA. For the 2025/2026 tax year, this allowance is £20,000, in addition to the £9,000 Junior ISA allowance that applied previously. There are no tax implications or reporting requirements for withdrawing funds from an ISA, irrespective of the amount.