Can you withdraw subscriptions from a JISA account?
The short answer is NO. Though, where the JISA is closed, see below, then funds can be withdrawn under these exceptional circumstances.
Subscriptions paid into a JISA account are considered a gift to the child, who’s name the JISA is held in.
Who can open a JISA account?
A JISA can be opened by someone with parental responsibility for the child. This is, of course, usually one of the parents. They are known as the “Registered Contact”.
The registered contact has control of the JISA at least until the child turns 16. This control extends to making investment decisions as to how the subscriptions are invested – most relevant for Stocks and Shares JISA’s rather than Cash JISA account. They can choose to transfer the JISA to another provider, which includes transferring from a Cash to a Stocks and Shares JISA, or vice versa. They also receive valuations and other communications relating to the account, But they cannot withdraw funds or assets from the JISA.
When can a JISA account be closed?
It should also be noted that, once opened, a JISA account cannot be closed, except under the following circumstances:
Where the child has died.
The child has turned 18.
Direct instruction has been received by the JISA provider from HMRC to void the JISA.
Where a terminal illness claim has been made on behalf of the child and accepted by HMRC.
Regarding control of the JISA account, when the child turns 16, they have the right to take over management of the account from the registered control, though they cannot withdraw or close the account until they turn 18 years of age. If the child does not take up this right, then the registered contact remains in control.
When the child turns 18, they can close the JISA account, withdraw all funds, or they can convert the JISA to an adult ISA account.