Hi, I have a young boy who will be turning 4 this month. He is British, but I am not in touch with his mum. We broke up but I want to save some money for this innocent boy, so that when he comes of age, those small savings can help him. I live in Uganda and would be sending the money from here. Is it possible to open up an ISA for him?
In terms of technicality, as your son is aged under 16 years and is a UK resident, a guardian is able to open a Junior ISA for him.
A Junior ISA allows a child to have a tax free saving pot with a capacity to save £4,368 per year.
At age 16, the child becomes eligible to manage their Junior ISA, and then at age 18 the Junior ISA graduates to an adult ISA, and the money becomes theirs. They can then do with it what they want.
However, there are two main points which may not work in your situation:
- The first one being that - a child cannot have multiple Junior ISAs, so you would need to check with his mother that there is not one in existence
- And the other is that any contributions to the child's Junior ISA have to be in sterling pounds, rather than another currency.
It may be better for you to invest using a savings pot in Uganda, and then gift the money when you feel it is appropriate.
Just be aware...
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.