Tax Tip Week 11 - Child Trust Funds
A Child Trust Fund is a long-term (18 years), Government implemented savings account for your child. Only the child can withdraw the money when they reach 18. Parents, family and friends can pay up to £1200 into the account and neither, parents or child will pay tax on income in the account.
Since 06th April 2005, the Government sent out vouchers of £250 per child for everyone receiving child benefit that would qualify to open an account. Children born after the 6th April 2005 will be given extra money to compensate for the loss of growth of the savings since the introduction of the scheme in 2002.
Read our guidance on Child Trust Funds for further information.