Is there a CTF account offering income tax relief (like a pension)?

chateau9

Hi,

First post - be gentle! I'm looking to start a trust fund for my 5yo (nothing to do with the government CTF scheme, which we're ineligible for).

However the trust fund products I've seen so far aren't all that thrilling. I'd be interested in knowing if there's an account that works like a matched-contribution pension scheme, therefore reducing my personal income tax liability.

To my mind, a trust fund account is much the same product as a pension scheme (albeit possibly over a shorter term), so if there isn't a product like this, there should be!

Cheers,
tamper

ReportInvestor

Hi,

The government usually tries to tax parents who try to give money to their children, not add to the contribution.

You could set up a stakeholder pension for your child (not a recommendation) and get basic rate tax relief on any contribution up to £2,808. The tax relief would go into the pension to make it up to £3,600 if you invested the full amount.

Why the government thinks that any child over 3 is less in need of government CTF contributions than the under 3s has always been beyond me.