Children age 16 and 17 eligible for both Junior ISA and adult cash ISA

Paul Kennedy, FundsNetwork head of tax planning comments: "Families should make the most of the ability for children aged 16 and 17 to have both a Junior ISA and an adult cash ISA.  Both the Junior ISA allowance and the adult cash ISA allowance are "use it or lose it" annual allowances and if not used by the end of the tax year are lost forever.

"The adult cash ISA allowance available to 16 and 17 year olds is £5,340 for the current tax year 2011/12 and set to be £5,640 for tax year 2012/13. That's an additional amount of up to £10,980 that a young adult could contribute to their own adult cash ISA in addition to the £3,600 per annum that can be contributed into their Junior ISA over these tax years. If that £10,980 were to grow at an average tax-free interest rate of 4%, it would be adding about a further £18,000 to the overall ISA pot at around age 30."