Child Trust Funds

What you need to know

Child Trust Funds have been introduced to:

help give children the best possible start in life, entering adulthood on a better financial footing.
encourage children to save, and more importantly, get used to saving regularly
allow parents, family and friends to contribute to the child’s future and really make a difference
enable children to start their adult life with some financial backing and to have the opportunities that may not have been open to them otherwise

Your child will be eligible if Child Benefit has been awarded for them and they are living in the UK and your child was born on or after 1 September 2002

From January 2005, the Government have been sending out vouchers worth at least £250 for children born on or after 1 September 2002. This voucher cannot be exchanged for cash and it must be used to open a Child Trust Fund.

In addition, when your child reaches 7 years of age, an extra amount – to be confirmed – will be paid by the Government directly into your child’s Child Trust Fund.

In addition to the Government’s contribution, family and friends can add up to a total of £1,200 each year to the fund on a regular or ad hoc basis. The proceeds from the Child Trust Fund are free of both income and capital gains tax. Nothing can be withdrawn from the fund before the child’s age 18 years.

How we can help you

We can give you an unbiased overview of all the options open to you for investing your Child Trust Fund voucher.

We can help you decide where to set up your Child Trust Fund. We'll take into consideration the amount of additional payments that are likely to be made and how significant the fund will be to your child's future.