Child Trust Fund Payout | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Payout. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Payout in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Payout
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Child Trust Fund Uk Change Of Address | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Uk Change Of Address. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Uk Change Of Address in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Uk Change Of Address
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Child Trust Fund Year 2000 | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Year 2000. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Year 2000 in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Year 2000
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Moving A Child Trust Fund | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Moving A Child Trust Fund. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Moving A Child Trust Fund in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Moving A Child Trust Fund
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Who Has A Child Trust Fund | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Who Has A Child Trust Fund. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Who Has A Child Trust Fund in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Who Has A Child Trust Fund
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Child Trust Fund Qualification | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Qualification. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Qualification in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Qualification
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Child Trust Fund Uk Interest Rates | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Uk Interest Rates. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Uk Interest Rates in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Uk Interest Rates
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Child Trust Fund Yearly Limit | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Child Trust Fund Yearly Limit. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Child Trust Fund Yearly Limit in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
Income Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2472
Tax Code (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2473
Corporation Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2493
Tax Credits (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2502
Inheritance Tax (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2506
Tax Rebate (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2497
Child Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2503
Working Tax Credit (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0903 871 2494

About Child Trust Fund, which may help your questions on Child Trust Fund Yearly Limit
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Natwest Child Trust Fund Kiid | Child Trust Fund information

Click here to call our HMRC connection number now
(Calls cost 7ppm your network access charge.)

This website and any 0843 telephone numbers therein are operated by e-Call Connect Ltd and is not affiliated with, or operated by, any organisation listed on this site. Any 09 numbers are operated by 118 Connect Limited, who can be contacted by calling 0330 332 7663.
A direct number for this organisation can be obtained from the Gov.UK website at no or lower cost by clicking here. If you do not wish to use this connection service, are disconnected or put on hold, we recommend you call using a direct number which can be found in the link above.

 

The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Natwest Child Trust Fund Kiid. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Natwest Child Trust Fund Kiid in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

Department Call Connection Phone Numbers - we are in no way affiliated with any organisation mentioned
Tax Office (HMRC) (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0147
HM Revenue & Customs (Calls cost £1.50 connection fee plus £1.50 per minute plus your phone provider’s access charge)
0905 481 0098
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About Child Trust Fund, which may help your questions on Natwest Child Trust Fund Kiid
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Who Is My Child Trust Fund With | Child Trust Fund information

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The Child Trust Fund, also known as the CTF, is a tax free savings account for children allows parents to invest up to £4,368 per year into a long-term account. The scheme has now been closed, and replaced with the Junior ISA instead. However, there are still plenty of people searching for information around it, in particular, the query Who Is My Child Trust Fund With. This is because those who were born between 2002 and 2011 were liable to have one opened for them, and payments can still be made into these accounts. Many people search Who Is My Child Trust Fund With in order to find out more about them, as understanding around the CTF is somewhat limited. However, the account holder can withdraw funds once they hit 18. If you have any further questions about the Child Trust Fund, you can speak to HMRC using our call connection number.

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0903 871 2503
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0903 871 2494

About Child Trust Fund, which may help your questions on Who Is My Child Trust Fund With
from Wikipedia

Child Trust Fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts cannot be created but existing accounts can receive new money: CTF new accounts were stopped in 2011 and replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto[3] and launched in January 2005, with children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at least £250. In 2010/11 the child trust fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget.[5] Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children’s Mutual, “In terms of changing people’s behaviour, this is the most successful product there’s ever been.”[6] For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances.[6] Creation of new funds and Government payments into them were ended in January 2011 by the Savings Accounts and Health in Pregnancy Grant Act 2010.

Background[edit]

Asset-based egalitarianism[7] traces its roots to Thomas Paine, who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax.[3] In 1989 LSE professor Julian Le Grand proposed a similar idea, calling it a “poll grant”.[3] Subsequently the related concept of Individual Development Accounts was developed in the United States by Michael Sherraden.[3][8] This approach – termed “asset-based welfare” by Sherraden – saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving.[9] Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future – in a way that providing people with an equivalent flow of income does not.[10] The idea of a universal account for all children first appears in Sherraden’s Assets and the Poor (1991).

In the UK the idea took off in 1999/2000 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research.[3][11] Sherraden’s Center for Social Development collaborated with the IPPR, and a briefing paper by it remarked “It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom”.[9] This carried through into proposals being included in the Labour Party‘s 2001 election manifesto.[3]

The Child Trust Fund scheme was promised in the Labour Party‘s 2001 election manifesto,[3] and launched in January 2005, with children born after 1 September 2002 eligible.[4] Over the course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets.[9]

According to the Institute of Public Policy Research

Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes:

Political opposition[edit]

Child trust funds were opposed by the Liberal Democrats in the 2005 general election, and the Liberal Democrats remain opposed. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy “gives direct expression to a deep, historic Liberal (and SDP) commitment to the ideal of ‘ownership for all’.”[13] He adds that “At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent.”[13]

In April 2010 Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income[6]), saying that “Confining CTFs to the poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship.”[5] He added that if funding had to be cut from the scheme, it would be better to reduce the government’s topups, and keep the scheme universal.[5]

Details[edit]

The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost.

Vouchers[edit]

  • At birth: The government gave every eligible child a voucher worth £250 to open the account, and also a further £250 directly into the accounts of children who live in low income families.
  • At age 7: The government would have made an additional payment of £250 into the account, with a further £250 for children in low income families.
  • At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any voucher subscriptions.

Subscriptions[edit]

As of 6 April 2018, parents and other family members or friends can pay £4,260 per year into their child’s fund; the year is counted from birthday to birthday, not a tax year. Originally the subscription limit was £1,200, and then from 1 November 2011 the limit was raised to £3,600[14] and has been increasing gradually each year since then, in line with increases in Junior ISAs.[15] Any gains or dividends will be tax free (except for the 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

  • child benefit has been awarded for them;
  • they are living in the United Kingdom; and
  • they are not subject to immigration controls

The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period.

  • Stakeholder accounts invest in shares, with a set of rules (“stakeholder standards”) to reduce financial risk. These include provision for money in the account being gradually moved to lower risk investments or assets when the child reaches age 13. This is to help to produce a stable return in the run up to the child’s 18th birthday. The charge on a stakeholder account is limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account are not limited in this way.
  • Savings account. These operate in a similar way to a bank deposit account; there is a rate of interest and the nominal value of the funds is secure.
  • Non-stakeholder account. Invests funds according to the type of product. These accounts are not protected by the “stakeholder standards”.

CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring the account, except for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]

On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010.[16] The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.