man lifting child

What is a Child Trust Fund?

Child Trust Funds (CTFs) are government tax-free savings accounts for children who were born between 1 September 2002 and 2 January 2011.

Even though CTFs have stopped, existing CTFs can continue until the child is 18. Parents, grandparents, friends and relatives can still continue to pay into the account or top it up on special occasions such as birthdays or Christmas.

One of the aims behind the government’s CTFs was to encourage parents to save for their child’s future, especially university education. However, the government decided to allow CTFs to be converted into Junior ISAs from 6 April 2015.

All monies paid out of a CTF are free from capital gains tax and income tax meaning that neither you or the child will have to pay tax on any of the income or profit it makes – the government has advised that there are no plans to change this.

Parents should note that from the day the money is paid into a CTF, it belongs to the child and not the parent. So when your child turns 18, they can do what they like with that money. Children can also take control of their account when they turn 16.

I am not sure if my child has a Child Trust Fund

Approximately 95% of the CTFs we look after were deposited by the government, as parents of those children didn’t use their vouchers in time. However, the CTFs have performed very well whilst under the management of the Society – we currently manage over 80,000 CTFs.

How do I find a lost Child Trust Fund?

If your child was born between 1 September 2002 and 2 January 2011 they will have been entitled to a Child Trust Fund (CTF) voucher from the government. You can search for a lost CTF by going to the HMRC website: https://www.gov.uk/child-trust-funds.

For further information about the investment products we provide, please visit our website at www.healthyinvestment.co.uk or contact the friendly team at Healthy Investment on 0161 762 5790; or email enquiries@healthyinvestment.co.uk.

Alternatively, you can find out about our other products by clicking on the links below:-

Link to ISAs

Link to Junior ISAs

Link to Investment Bond

Link to Tax Exempt Savings Plans