The Child Trust Fund
The Child Trust Fund (CTF) is a long-term savings and investment account for children. It ensures that eligible children have savings at the age of 18 and helps them and their parents get into the habit of saving. HM Revenue & Customs (HMRC) administer the Child Trust Fund.
How it works
Children living in the UK are entitled to a CTF account if:
- they were born between 1 September 2002 and 2 January 2011 (inclusive), and
- the first day for which Child benefit was paid for them was before 3 January 2011.
In addition to government payments, family and friends can contribute up to £1,200 in total to the account each year (this will rise to £3,600 from 1 November 2011 and be indexed annually by the Consumer Prices Index from 6 April 2013 onwards).
The money in a child's CTF account can only be taken out before the child’s 18th birthday if the child dies or is terminally ill.
If a child is terminally ill, a person with parental responsibility may get early access to the money in a child's account if:
- Disability Living Allowance under the Special Rules arrangements for the terminally ill has been awarded for the child, or
- other evidence of the child's terminal illness is provided.
Medical practitioners may be asked to provide information about a patient’s condition on form CTF1500.
There is more information about early access to funds and a copy of form CTF1500 on the HMRC website.
- CTF – Early access to funds (HMRC website)