Government changes to the Child Trust Funds

On 24th May 2010 the Government announced that they are proposing to make changes to the Child Trust Funds. To enforce any changes to the scheme legislation must be passed in Parliament first.

The changes which have been outlined are as follows;

• Any child born from August 2010 to the end of December 2010 will receive a voucher with the new value of £50.
• Any family who have been assessed and qualify as a low income family and have a child who is born between August 2010 and the end of December 2010 will receive an additional voucher of £50.
• Any child born after December 2010 will not be eligible for the scheme.
• Any child who turns 7 years of age after 31st July 2010 will not receive the 7 year top up payment.
• Existing accounts will still benefit from being tax free and the option will remain for family and friends to contribute to the accounts up to a maximum of £1,200 per year.
• Existing accounts will not receive any more contributions from the government after 31st July.
• Anyone with an existing account will still be able to change providers.
• Existing accounts will be available to draw upon once the young person reaches the age of 18 years of age.

For further information on the changes to Child Trust Fund Accounts visit:
http://www.hmrc.gov.uk/chancellors-statement/ctf-announce-qa.pdf

Download the Child Trust Fund PDF Guide here - see our other free PDF guides here

Guide Contents

Child Trust Fund (CTF)
Choosing the best Child Trust Fund
Managing a Child Trust Fund
Government changes to the Child Trust Funds
Frequently asked questions
Where to go for further help and information about Child Trust Funds

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