Child Trust Funds’ coming of age

Child Trust Funds’ coming of age

Matthew Barrand Savings, Trusts

Child Trust Funds (CTFs) are long-term tax-free savings accounts that were set up by the government for every child born between 1 September 2002 and 2 January 2011. Over 6 million CTFs were opened, with the first of these maturing in September 2020.

Every year between now and January 2029, the government estimate that 800,000 18-year-olds will receive access to their matured funds. Parents or guardians of qualifying children were sent a starting payment voucher from the government of either £250 or £500, depending on the household income, for investment.

Children whose seventh birthday fell between September 2009 and July 2010 also received a second payment of a similar amount, while parents, family, and friends have been able to make additional contributions. Although most accounts are likely to contain a few hundred or a thousand pounds, in cases where extra contributions were made, sums will be higher. We can help recipients assess their options at maturity.