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The Child Trust Fund
The Child Trust Fund ("CTF") was launched on 6th April 2005 and is a Government initiative
intended to encourage parents, and as they grow up, their children, to save for the future.
To kick-start the scheme, every child born in the UK will receive from the Government an endowment of £250 in the
form a voucher which will be issued to the parent who claims Child Benefit. On presentation to an approved CTF Provider,
this voucher will be converted into cash and then invested for the benefit of the child.
Children born into lower
income families who are receiving Child Tax Credit ("CTC") will qualify for a further endowment of £250.
This will be paid by HMRC (previously known as the Inland Revenue) directly into the child's CTF account.
Each year, family and friends may contribute up to £1,200 to a child's CTF and on the child's 7th birthday,
the Government will make a further contribution, expected to be between £250 and £500.
At the age of 18 years, the CTF will attain the age of maturity, as will the child who will then have unrestricted
access to the accumulated fund. A fully funded CTF could be worth in excess of £25,000* at maturity.
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