Child
Trust Funds
A few weeks ago we looked at
the Child Trust Fund – if you’re a new parent you’ll
be getting a pack through the door over the next few weeks telling
you about the £250 which is put in trust until the child is
18
Well more good news this week in the Chancellor’s pre budget
report – the government is doubling that payment at the age
of 7 - an extra £250, £500 for poorer families.
On Your Behalf will be looking at the best way you can invest your
child’s money in the New Year. What questions would you like
to put to our financial experts?
E mail the programme
FACT FILE ON CHILD
TRUST FUND
• a long-term savings and investment account where your child
(and no-one else) can withdraw the money when they turn 18
• neither you nor your child will pay tax on income and gains
in the account
• £250 voucher to start each child’s account
• children in families receiving Child Tax Credit (CTC), with
a household income below the CTC limit, will receive an extra payment
• a maximum of £1200 each year can be saved in the account
by parents, family or friends
• money cannot be taken out of the CTF once it has been put
in – once your child is 18 they will be able to decide how
to use the money
• children can start to make decisions about how the money
is managed when they are 16
• the Government will make a further contribution when your
child is seven - the amount has not been decided yet
• not just one type of CTF account – you choose the
type of account you want for your child
• it will not affect any benefits or Tax Credits you receive
• learning about how to make the most of your money is a key
part of the CTF
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