Individual Savings Accounts (ISA) rules are clear that only someone with parental responsibility for the child may open and manage a Junior ISA (JISA). This helps prevent more than one JISA of each type (cash or stocks and shares) being opened in error and ensures that there is a single point of contact for the giving of instructions. A grandparent who does not have parental responsibility is therefore unable to open or manage a Junior ISA on behalf of their grandchild.

While only parents or legal guardians can open a JISA on behalf of their children, grandparents can then add funds to the account, up to the value of £9,000 a year.

As with all aspects of the tax system, the Government keeps the JISA policy under review.