The Child Trust Fund

MSE_Martin

The following was announced today by the Inland Revenue

28 October 2003: Detailed proposals for the Child Trust Fund (CTF) were published today.
As the Chancellor announced in Budget 2003, each child born on or after 1 September 2002 will receive an initial endowment of £250 rising to £500 for the poorest children - a reform which is progressive and universal, benefiting every child and with more to those who need help most.

Amongst the measures announced today are:
* The Government will make a further payment when children are seven years of age. The amount of this payment will be confirmed at a later date.
* Family and friends will be able to contribute up to £1200 a year between them to the fund.
* It will not be necessary to make a specific claim for the CTF - access will be through the child benefit system.
* Providers will be able to offer a variety of accounts. However all providers must offer a stakeholder account - a low cost risk-controlled equity account.
* All income and capital growth will be tax exempt.
* Special arrangements will be made for children in care.

The fund will help to build up a stock of assets for the young person to reinvest or use when they reach 18 years of age, giving them added security and opportunity in adulthood. Financial education will also help individuals to make better financial choices throughout their lives.

Commenting on the proposals, Financial Secretary Ruth Kelly said:
"The Child Trust Fund will ensure that children will have assets of their own to help them get a better start to their adult life. It is a leading example of the Government's commitment to an active welfare strategy based on the principles of security, opportunity and responsibility for all.

"It will also give young people experience of savings and investment opportunities and help them to manage their finances better in later life."

Dannyboy_4

Article in today's Telegraph:

Short link:

http://snurl.com/2svr


Long link :

http://money.telegraph.co.uk/money/main.jhtml;$sessionid$O1IWDVVYC403FQFIQMGCFFOAVCBQUIV0?grid=M3&menuId=244&menuItemId=2849&xml=/money/2003/11/01/cmian01.xml&grid=M3&menuId=244&menuItemId=2849&_requestid=144472


Danny.

System

Does anybody know how to open an account??

Cazx

Still no info on how to get this anywhere.

Does it magically appear?

Its a bit confusing ???

Pal

If you read the articles all is explained. They are not being introduced until April 2005, at which point the government will no doubt waste even more taxpayers money advertising these pointless policies.

Trix

The child trust fund will also allow people with disabled children extra provision and will allow parents to access it before their 18th birthday to pay for equipment etc

Daedulus

Okay, this starts April 2005 and I can add upto £1,200 each year to the fund. I assume a year is April-April. My daughter was born in December 2002.

So, have I missed the years 2002-2003, 2003-2004, 2004-2005? Or do I have the opportunity to put £4,800 in the first year? Or hasn't it yet been decided.

Thanks

Daedulus

Okay, I found quite a bit more information at:

http://www.inlandrevenue.gov.uk/ctf/

Including:

Can I pay in more the following year, if we don’t reach the £1,200 limit in one year?

* No, the limit of £1,200 applies to each year separately.
* Each year for this purpose runs from your child’s birthday one year until the day before your child’s birthday the next year.

and

Children born between 1 September 2002 and 5 April 2005 will receive a starting voucher for slightly more than £250 in recognition that CTF accounts are only available from April 2005.