What is a Child Trust Fund?

A Child Trust Fund (sometimes abbreviated to 'CTF') is a long-term savings or investment account for children in the United Kingdom, with no tax to pay on any income or profit it makes. The money belongs to the child and is managed by the 'Registered Contact', until the child is 16 years old when they can manage the account themselves. However, withdrawals are not permitted until the 18th birthday of the account holder.

There is currently a £9,000 annual limit available to invest into the account, which runs from the child’s birthday.

Example: If the child was born on 15/04/2019 the £4,368 2019/20 allowance will run from 15/04/2019 – 14/04/2020, it would then refresh to £9,000 on 15/04/2020 and so on.

Please Note: New accounts cannot be created but existing accounts have full functionality and can receive new money. Child Trust Funds have been replaced by Junior ISAs; however it is important to note that EQi do not currently offer a Junior ISA.

- Submitted on 4th Apr 2020

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