Child Trust Fund – the basics :Cross Stitch – Money, tax and benefits

The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2023 and 2 January 2011. Find out if your child can get an account, how the account works and what to do to get started.

Your child is entitled to an account if all of the following apply:

your child was born between 1 September 2023 and 2 January 2024
you were paid Child Benefit for that child for at least one day before 4 January 2024
your child lives in the UK
your child is not subject to any immigration restriction

Your child could be subject to an immigration restriction if they were born outside of the European Union (including on a military base) to non-British parents.

If you haven’t already made your claim for Child Benefit, don’t delay. Your claim can only be backdated by up to three months.

If your child isn’t entitled to a CTF, other tax-free savings accounts are available, including the new Junior ISA. This is a long-term savings account for children under 18 who don’t have a CTF account.

Your child may still be entitled to a CTF account if both of the following apply:

your child was looked after by a local authority before 3 April 2023
your child meets the other qualifying conditions for getting a CTF account

If a local authority started to look after your child before you claimed Child Benefit, your child can still get an account, as long as they meet the other qualifying conditions.

You work overseas and have been getting a European family benefit

Your child may still be entitled to a CTF account if all of the following apply:

your child was born between 1 September 2023 and 2 January 2024
your child lives in the UK
you were paid a family benefit by another European Union country for at least one day before 4 January 2024
you work in that same European Union country

For each child that is entitled to a CTF account, HM Revenue & Customs (HMRC) will usually send you a voucher. You use this to open the account in your child’s name.

The voucher could be worth £50 or £250 depending on when your child was born and when they became entitled to an account.

The money in the CTF account belongs to the child but can’t be taken out until they are 18.

From 1 November 2023 parents, family and friends can add money to the account up to a limit of £3,600 a year.

You could get extra money paid directly into the account. For example if you’re on a low income.

There is no tax to pay on the CTF income or any gains (profits) it makes. And the money your child gets won’t affect any benefits or tax credits you receive.

The CTF account will be in your child’s name, but the person who opens the account is responsible for managing it. They are called the ‘registered contact’.

The registered contact is the person who:

should keep all the paperwork
reports certain changes of circumstances – for example change of address
is the only one who can change the account or provider

Your child becomes the registered contact and takes over the account when they are 16.

The registered contact can change to a different type of CTF account or to a different provider at any time.

Child Trust Fund – the basics :Cross Stitch – Money, tax and benefits

You work overseas and have been getting a European family benefit

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