The Child Trust Fund

The Child Trust Fund is a Government initiative, a savings and investment account for children.

The Government will make a payment to children through this account to help them build some assets for when they reach the age of 18.

To be eligible for the payment, the child must be born after 31st August 2002, living in the United Kingdom and Child Benefit has been awarded for them. In these cases, a voucher for £250.00 will be sent to the Child Benefit Claimant, which can then be used to open a Child Trust Fund account.

If your family is on a low income and receives Child Tax Credit with a household income of the current limit of £14,495 or below, your child will receive an additional £250.00.

You do not need to claim the voucher, as it will automatically be sent to the Child Benefit Claimant when the scheme is ready. Information packs will be sent out with the voucher giving information of how to open the account. If the account is not opened within 12 months of the voucher being issued, the Inland Revenue will open the account for the child.

There will be no income or capital gains tax liability on the Child Trust Fund proceeds, and the Child Trust Fund will not be taken into account in any claims for state benefits for the family.

The money in a Child Trust Fund account (whether the sole Government contribution, or additional contributions from friends/family) belongs to the child and will be locked in until he or she reaches age 18.

For more information visit www.inlandrevenue.gov.uk, or please complete our enquiry form.