A Child Trust Fund (CTF) is a tax-advantaged savings account which provides children born between 1 September 2002 and 2 January 2011 with an asset when they reach adulthood.
CTFs begin maturing in September 2020 when the first children reach 18. Without legislative change the investments will lose their tax-advantaged status at maturity.
An announcement was made at Budget 2018 that consultation would take place on draft regulations which would ensure that the funds in maturing CTF accounts could retain their tax-advantaged status after maturity.
The government has today published draft legislation, together with a tax information and impact note, for technical consultation.
You can read:
- technical consultation document: Maturing child trust funds - draft regulations
- (draft) The Child Trust Funds (Amendment No. X) Regulations 2020
- (draft) The Individual Savings Account (Amendment No. X) Regulations 2020
- a tax information and impact note (draft)
Ways to respond
Mature CTF Consultation, HM Revenue and Customs, Room 3C.07, 100 Parliament Street, London, SW1A 2BQ.