The Child Trust Fund was introduced in April 2005 to:
Every child born on or after 1 September 2002 is eligible for the CTF provided they:
The children of Crown servants, including the Armed Forces, posted abroad, qualify because they are treated as being in the UK.
You will be sent a voucher for £250 to start your child's account. Children in families receiving child tax credit (CTC), with a household income below £15,575 will receive an additional £250. A further payment of £250 will be made when your child is aged 7. If you are on CTC an additional £250 will be paid when your child reaches age 7.
These payments can only be invested in child trust fund accounts. No withdrawals will be allowed until your child is 18. At that point only the 18 year old will be entitled to withdraw the money.
Your child will receive their £250 voucher shortly after child benefit has been claimed and starts being paid.
Families and friends are encouraged to contribute to the CTF and can pay up to a maximum of £1200 each year into the account. The fund and any income or gain is tax free. You can choose the type of account you want for your child. Details of different types of account and account providers are available from the child trust fund website.
You can call the CTF helpline between the hours of 8am and 8pm every day except Christmas day, Boxing day and New Years day. The numbers are:
0845 302 1470 (if calling from within the UK)
00 44 1355 359002 (if calling from abroad)
0845 302 1489 (for Welsh speakers between 8.30am and 5pm Monday to Friday)
0845 366 7870 (textphone)
You can also write to:
Child Trust Fund Office
Waterview Park
Mandarin Way
Washington
NE38 8QG
You can find out more information on the child trust fund website at www.childtrustfund.gov.uk. There is also information on the HM Revenue and Customs website at www.hmrc.gov.uk/ctf/.
April 2008
