Child Trust Fund guide
What is a Child Trust Fund?
The Child Trust Fund (CTF) is a long-term savings and investment account introduced by the government to encourage parents to save for their child's future.
What is a Child Trust Fund?
The Child Trust Fund (CTF) is a long-term savings and investment account introduced by the government to encourage parents to save for their child's future. The scheme has now been withdrawn and no new Child Trust Fund accounts can be opened.
I have received my child’s CTF voucher but not used it yet – can I still use it?
The last CTF vouchers to be issued had an expiry date of March 2012 so will no longer be valid. If you did not use your voucher before the expiry date, HMRC will have opened an account for your child on your behalf and will provide you with details.
Will I (or my child) now be able to withdraw the money invested in my child’s CTF account?
No. The withdrawal of the scheme does not affect existing CTF accounts. Only the child can withdraw the money and only when they reach 18.
My child already has a Child Trust Fund provided by Family Investments – what will happen to it?
This account will continue to operate as normal. However, your child will not be eligible for any further government contributions.
You, along with family and friends, may still contribute up to a combined total of £3,600 for the 2012/13 tax year into your child’s account. Remember, any money paid into the account belongs to the child. Only they will be able to access it, and only when they are aged 18. Top up now
You will continue to receive an annual statement and can still track and manage your child’s account online using the Family Investments Online Account Management .
Who can I talk to for further information?
Call Family Investments 1 Customer Service team on 0844 8 920 920 2.
You can also contact the government’s Child Trust Fund helpline on 0845 302 1470 2 or visit their website – Child Trust Fund site
Can I add money to my child's account?
Yes. You and your relatives and friends can add up to £3,600 for the 2012/13 tax year between you. Any money paid in will remain there until the child is 18.
However, if you would like to save for your child but wish to have access to the money, you could open another type of account, such as the Barclays Children's Savings Account. If you'd like to consider other investment opportunities, Barclays offers a range of savings, investment and protection products. However, these may require you to save larger amounts for longer periods.
What will the Child Trust Fund account eventually be worth?
That depends on the type of Child Trust Fund account you have chosen and how it's affected by inflation, interest rates and stock market fluctuations. It also depends, of course, on how much additional money you put into the account.
Is it taxable?
Returns on CTF accounts are exempt from Income Tax and Capital Gains Tax. Your entitlement to other family benefit and tax credits isn't affected either. Remember, tax advantages depend on individual circumstances and may change in the future.