Child Trust Funds

Child Trust Funds - long term savings for Children

Designed to encourage long-term savings for children, every child born on or after 1 September 2002 will receive a Government voucher for at least £250, to be used to open a Child Trust Fund. From 1st August 2010 new vouchers will reduce from £250 to £50 and will cease all together from 1st January 2011.

The Child Trust Fund is a long-term savings and investment account for children launched in April 2005. The Government will make payments to children through this account to help build up a useful stock of assets for when they reach the age of 18. The Child Trust Fund accounts will help to strengthen the savings habit of future generations, spread the benefits of assets ownership to all, educate people in the need for savings and give young people a basic understanding of financial products.

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

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

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

Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

The value of your investment can go down as well as up and you may not get back the full amount invested.