• 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) may be entitled
to an additional payment of £250. Entitlement is normally
based on the date child benefit was first paid for the child.
Where child benefit was first paid for your child on, or
after 6 April 2008 you must have household income under
the CTC threshold (£16,040 for 2009/10) and claim
CTC no later than the date your CTF voucher expires. Make
sure you don't leave it too late! Where child benefit was
first paid before 6 April 2008, a CTC award must be in place
for the time at which child benefit was awarded.
• 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
• not
just one type of CTF account - you choose the type of account
you want for your child
• at
any time you can move the account to a different provider
or change the type of account
•
it will not affect any benefits or Tax
Credits you receive.
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