Child Trust Fund

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Children living in the UK for whom Child Benefit is being received and who were born on or after 1 September 2002 are entitled to a Child Trust Fund account. You don't need to make a claim to get the account started, the Government will send you a voucher for £250 automatically.The account can give your child a head start as a young adult. It will help your child understand personal finance and the importance of saving for their future. The account belongs to them and when they turn 18, the money is theirs to use as they think best.

Key facts about the Child Trust Fund

·         It is a long-term savings and investment account where your child (and no-one else) can withdraw the money when they turn 18
·         Neither you nor your child will pay tax on income and gains in the account
·         £250 voucher to start each child’s account
·         Children in families receiving Child Tax Credit (CTC), with a household income not greater than the CTC threshold of £15,575 for 2008/09 will receive an extra payment, once a CTC award has been finalised (A CTC award must be in place for the time at which child benefit is awarded to get the additional payment. As CTC claims can only be backdated 3 months make sure you don't leave it too late!) For previous years' CTC thresholds use this link
·         A maximum of £1,200 each year can be saved in the account by parents, family or friends
·         Money cannot be taken out of the Child Trust Fund (CTF) once it has been put in – once your child is 18 they will be able to decide how to use the money
·         Children can start to make decisions about how the money is managed when they are 16#
·         The Government will make a further contribution when your child is seven - all eligible children will receive a further payment of £250 into their CTF account at age 7, with children in lower income families receiving an additional £250. These payments will be paid around the child's 7th birthday direct into their account
·         There’s not just one type of CTF account – you choose the type of account you want for your child
·         You can move the account to a different provider or change the type of account at any time
·         It will not affect any benefits or Tax Credits you receive.

Child Trust Fund & Child Benefit
The first step to opening a Child Trust Fund (CTF) account is to make a claim for Child Benefit. Once you start receiving Child Benefit for your child, an information pack and then a voucher will be automatically issued. This should happen quite quickly and if you don’t get a voucher within a month you should call the CTF Helpline (see contact us button at the top of the page).Child Benefit is for people who are bringing up children and is usually paid for the period from the Monday following the child's date of birth. It is paid for each child and is not affected by income or savings.
Claiming Child Benefit
You can claim Child Benefit if you’re bringing up a child or children:
under the age of 16, or
aged under 19 and studying full-time up to A level, Advanced Vocational Certificate of Education (AVCE) or equivalent, or
aged 16 or 17 who have recently left school, and registered for work or training with the Careers Service or Connexions Service (in Northern Ireland, Training and Employment Agency).
You do not have to be the child's parent to get Child Benefit. You may get Child Benefit if you pay towards bringing up a child who does not live with you and no one else is claiming it for them.There are some restrictions on Child Benefit claims by people who have recently come to the UK from abroad, even if they are UK Nationals.For further information about the Child Trust Fund please click ~here~