Child Trust Fund

Child Trust Funds

Designed to encourage long-term savings for children, every child born on or after 1 September 2002 will receive a Government voucher for at least £250, to be used to open a Child Trust Fund.

The CTF is a new long-term savings and investment account for children. The Government will make payments to children through this account to help build up a useful stock of assets for when they reach the age of 18. The CTF accounts will help to strengthen the savings habit of future generations, spread the benefits of assets ownership to all, educate people in the need for savings and give young people a basic understanding of financial products.

From April 2005 you will be able to pay up to an additional £1200 each and every year until your child's 18th birthday. Friends and family will also be able to contribute towards the £1200 annual limit.

The Child Trust Fund will belong to your child. All funds, including any growth, will be free of any personal income tax and capital gains tax and available to your child when he or she turns 18.

We can select from the whole market of Child Trust Fund providers, whether you want a cash savings account or an equity fund that invests in the Stock Market.