Child Trust Fund: CTF Bulletin 87
Published 31 January 2020
© Crown copyright 2020
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/child-trust-fund-ctf-bulletin-87/child-trust-fund-ctf-bulletin-87
1. Amendment to the Child Trust Fund regulations
Statutory Instrument 2020 number 29 was laid before parliament on 15 January 2020 and comes into force on 6 April 2020.
These regulations amend the CTF Regulations to provide for when a CTF account matures but no instructions are made by the holder of a matured CTF account after their 18th birthday.
2. Amendments made to the CTF guidance notes for providers ahead of the first CTF accounts maturing in September 2020
Amendments to the guidance notes for CTF providers published on 31 January 2020 include:
| chapter 3.1 | updated to confirm that a stakeholder and a non-stakeholder CTF account matures when the account holder becomes age 18 |
| chapter 5.1 | updated to confirm that at age 18 only the account holder can give instructions to their CTF provider |
| chapter 9.1 | amended to explain that CTF providers should issue a statement to the account provider on the account holder’s 17th birthday and 12 months after a CTF account matures |
| Chapter 10.10 | Amended to confirm that matured CTF accounts can be included in a bulk transfer of CTF accounts from one provider to another. |
| Chapter 11.4 | Several new paragraphs added to explain what happens to a CTF account when an account holder becomes age 18. |
| Chapter 13.1 | Updated to confirm that matured CTF accounts must be included on the annual return of CTF information to HMRC, unless they are transferred into an ISA. |
| Chapter 17 | Updated Contact details. |
| Chapter 18 | definitions of Matured CTF account & Protected account added. Updated definition of Recognised UCITS. |
3. Annual returns of CTF account information
Under CTF regulation 32, CTF providers are required to make a return of account information to HMRC within 60 days of the 5 April 2020, for example, by 4 June 2020 or within 60 days of the date of ceasing to qualify, or act as a provider.
Providers must report details of all CTF accounts they managed during the return period including CTFs transferred in and where the child has died. Details of CTF accounts transferred to another provider do not need to be reported to HMRC.
The annual CTF return can only be submitted to HMRC electronically. The return must include details for each CTF account managed during the return period and show:
- the child’s unique reference number
- if the account is a stakeholder account (Type 1) or a non-stakeholder account (Type 2)
- whether or not there is a registered contact for the account
- the aggregate market value of the investments held under the account at 5 April
- the total cash subscribed to the account during the return period ending on 5 April
Chapter 13 of HMRC’s guidance notes for CTF providers sets out how providers should complete their annual returns.
CTF providers can get technical assistance when submitting their digital return to HMRC by contacting: martyn.broadley@hmrc.gov.uk