Child Trust Fund: Tax Allowances

(asked on 29th January 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Economic Secretary to the Treasury, of 13 March 2019, Official Report, column 179WH, when the Government plans to lay the draft regulations that will ensure that investments held in Child Trust Fund accounts will retain their tax-free status after maturity.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 3rd February 2020

The Child Trust Funds (Amendment) Regulations 2020 (SI2020/29) were laid on 15 January 2020 - www.legislation.gov.uk/uksi/2020/29/contents/made

Child Trust Funds (CTF) accounts will start to mature in September 2020 when the first children reach 18. These regulations ensure maturing CTF will retain their tax-free status and also provide that funds in a mature CTF may be transferred to an ISA without counting towards the individual’s annual ISA subscription limit.

HMRC has improved the National Insurance number notification letter, which is sent out prior to a child’s 16th birthday, to raise awareness of the Child Trust Funds scheme. The letter informs young people that they may have money in a Child Trust Fund and signposts them to HMRC’s guidance on accessing and managing the account.

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