Child Trust Fund
With Government changes to Child Trust Fund accounts, Scottish Friendly no longer accepts new applications into the Child Trust Fund. If you’re looking for another way to invest for your child’s future why not take a look at our investments for children which includes the Junior ISA.
Information on the Child Trust Fund, including the recent Government changes, has been provided here for your reference only. For more information visit the Government's Child Trust Fund website (opens in new window) or call the Government helpline on 0845 302 1470.
What does the Child Trust Fund offer?
It works like this:
- The Government automatically sends a Child Trust Fund voucher to a new child (born between 1st September 2002 and 2nd January 2011 and receiving Child Benefit)
- You choose where to invest the money on behalf of your child
- You and your family and friends can also add money to the Child Trust Fund - either as a regular amount each month, or in one-off payments - to a maximum of £3,600 per year (once added this money cannot be withdrawn)
- At age 18, your child will receive a lump sum to use however they choose - completely free of tax - no capital gains or income tax under current legislation. Tax treatment depends on their individual circumstances and tax law may change in future.
Babies born on 3rd January 2011 or later, or before 1 September 2002, do not qualify for a CTF account and won't receive CTF payments.