Opening an Account
A child is eligible for the CTF if he/she
- Was born on or after 1st September 2002
- Is currently living in the UK
- Is receiving Child Benefit
- Is not subject to Immigration Control.
Children born between 1st September 2002 and 5th April 2005 had to be living in the UK on or after 6th April 2005 in order to be eligible.
The rules mentioned above do not apply to certain specific cases where the parents or children are living outside the UK or are non-UK citizens:
- Children of Ministry of Defence families and other UK Crown servants
- Children who are subject to immigration restrictions
- Children living outside the UK who get UK Child Benefit
- Children living in the UK with Child Benefit paid by another EU country
- Children who left the UK before the CTF was launched
- Children with CTF accounts who moved away from the UK
- Parent is from the UK, but living or working abroad
- EU citizens living in the UK
- EU citizens living in the UK.
The process of opening a CTF account is fairly simple. The first step is to claim Child Benefit. Once this has been claimed and starts being paid, the government will send you a £250 voucher to open the CTF account. Once you receive the voucher you will need to open the account with a service provider of your choice. There are several service providers providing different types of accounts. You will have to select one that best serves your needs.
If you do invest your voucher (i.e. open your account) within one year, the government will automatically invest it for you. It is possible to transfer the investment to a service provider of your choice at a later date, but it is advisable to invest at soon as possible.
Children belonging to lower income group families (e.g. families receiving full Child Tax Credit) are entitled to an additional £250, which will be paid directly to the CTF account.
Once the account has been opened, you (and your family and friends) will be able to add up to £1,200 to the account every year. The money will remain in the CTF till the child reaches the age of 18, at which point he / she will be able to access and/or withdraw it.
Eligible children born on or after 1st September 2002 will receive a further payment of £250 from the government at the age of 7. Children in families that qualify for full Child Tax Credit with an income below the CTC threshold will receive an additional £250. These payments will be made directly into the CTF account and will not count towards the £1,200 yearly limit.
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