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More info about CTFs

Helping you put money aside for your children in a
tax-efficient way

The Child Trust Fund (CTF) was a Government initiative introduced for children born after 1 September 2002 and before 2 January 2011. It was designed to help you put money aside for your child.

CTFs changed during 2010 when the Government announced the scheme would not continue for children born on or after 2 January 2011. No new CTF vouchers will be issued after this date.

If you have a valid voucher you have not used, you will still be able to use it to open an account. Vouchers are valid for up to 12 months from the date of issue.

The money in the CTF is released on the child's 18th birthday to give them a head start in adult life.

The Government introduced two main types of account, one stakeholer and one non-stakeholder which could be split between cash and investments.

Which children are eligible?

The Government provided vouchers to children born in the United Kingdom from 1st September 2002 to 2 January 2011. This process was automatic and you did not need to apply for your vouchers after the birth of your child.

What if my child does not qualify for a CTF?

If you would like to invest for children who did not qualify because they were born before 1st September 2002 or after 2 January 2011, then either our Junior ISA or our Junior Investment Account could be right for you.

How much can be contributed into a CTF?

With effect from 1 November 2011 the allowance increased from £1,200 to a £3,600 a year (between the child's birthdays). This can be invested into a CTF account in addition to the voucher from the Government.

Once contributed, money belongs to the child and cannot be returned to the donor. It is locked in (except as permitted by CTF regulations) until age 18 when the child decides how to use it.

You needn't worry if the total contributions in one year exceed the maximum allowable; we'll automatically put the excess into a separate 'holding' account ready to add to the CTF after your child's next birthday. Please note that money in the 'holding' account belongs to the child and is subject to the same restrictions on withdrawals as apply to the Child Trust Fund account. A liability to Income Tax may arise on money in a 'holding' account.

How do I open a Child Trust Fund account?

If you are the person claiming Child Benefit for the child, it's you who'll receive the information and voucher from the Government. You can then use your voucher to open an account. Technically, a CTF account can only be opened by a parent (or someone with 'parental responsibility'). Under the CTF regulations, this person becomes known as the 'registered contact'.

You can choose where to invest your voucher from a list of HM Revenue & Customs-authorised providers that includes The Share Centre. Naturally, as our passion is making the stock market accessible to everyone, we hope you'll choose us. In which case you just send us your voucher with a completed application form.

Like all CTF providers, we have to hold on to your application for 14 days (the 'cancellation period') before we can actually open your account. Once it's open, we can claim the value of your voucher from the Government and invest it for you.

Once your account is up and running, you'll receive annual statements from us in April. You can also view your child's CTF and its value through your own secure online account on this website.

If you don't choose a provider for your child's CTF within 12 months, HM Revenue & Customs will select one for you.

What are the tax breaks?

As with any other stock market investment, dividends are taxed at source with the Child Trust Fund, but there's no Capital Gains Tax and no further income tax to pay. This applies both to the parent and the child.

What if I have more questions?

If there's anything you feel we've left unanswered, or if you have any questions about completing your application, please call us on 01296 41 45 41 and we'll be happy to help. Lines are open from 08:00 to 18:00 Monday to Friday.

Once your account is up and running we'll confirm receipt of your initial Government contribution and provide everything you need to help you monitor and manage your child's CTF.

01296 41 41 41