Child Trust Funds
The CTF was a Government-run scheme that allowed children born between the dates of 1 September 2002 and 2 January 2011 to save tax-free for the long term, with added benefit from the Government.
However this scheme is no longer available, so those looking to save for their children will have to consider other options. One of these options is the Junior ISA (JISA). JISA’s are accounts that are completely tax-exempt on both growth of the fund and any final lump sum payments, offering the chance to save effectively for the future. Those with CTF’s are currently unable to transfer their plan to a JISA, although there have been many calls for the government to allow this, as people consider JISA’s more advantageous in regards to flexibility and gains on the fund.
You are no longer able to take out new CTF policies, although your provider will still allow you to deposit into it. For more information about your policy, visit www.direct.gov
Is this the end of Child Trust Funds?
The Conservative party recently announced plans to bar families earning over £16,000 a year from opening new Child Trust Funds (CTF) and revealed they will lose £500 worth of government top ups for schemes already in existence. This is a major change from the Labour strategy which had been welcomed as a means of saving for the future of children in the UK. It has also given the Labour Party perf...Read More
New push on Child Trust Funds
The government is starting a new push to get parents to start a Child Trust Fund (CTF) for their offspring, following the news that as many as one in four parents are still not taking up the initiative.If the vouchers have not been used within eight months, the government will send out letters to parents to remind them to make the most of the opportunity.A CTF voucher worth £250 is available to a...Read More
Is the UK government set to abolish child trust funds?
The socially conscious Labour Party introduced Child trust funds back in 2002, which saw each and every child in the UK receive £250 at birth and a further £250 on their seventh birthday. The idea was that these funds, which cannot be touched until the child is 18 years of age, would give UK youngsters a financial lifeline in later life. There had also been hopes that parents around the UK would...Read More