Child Trust Funds were the government’s long-term savings accounts for children before Junior ISAs. The scheme closed in 2011, but the accounts still exist, and many are maturing as their owners turn 18.
The rules
Child Trust Funds are tax-free accounts for children born between 1 September 2002 and 2 January 2011; the scheme closed in 2011, but up to £9,000 a year can still be added. The money belongs to the child, who can take control at 16 and take it out at 18.- Children born between 1 September 2002 and 2 January 2011 have one.
- You can still add up to £9,000 a year.
- The money belongs to the child; they can take control at 16 and take the money out at 18.
- There's no tax on its income or gains, and it doesn't affect your benefits.
- A child can't have both a Child Trust Fund and a Junior ISA; a Child Trust Fund can be transferred into a Junior ISA.
Finding a Child Trust Fund
If you know the provider, contact it directly. If you don’t, you can ask a parent or guardian, or use HMRC’s free online tool to find out where the account was opened. You can use it if you’re 16 or over and looking for your own, or a parent or guardian of a child under 18. You’ll need a National Insurance number, and a parent or guardian needs the child’s full name, address and date of birth and any previous names.
HMRC usually replies by letter within 3 weeks of an online request (postal requests take longer); if you’ve heard nothing after 6 weeks, you can write to HMRC. The tool tells you the provider, not how much is in the account.
At 18
On the 18th birthday the Child Trust Fund matures. The owner automatically takes over the account and no more money can be paid in. They can then:
- take the money out, or
- transfer it to an adult ISA, where it stays tax-free: see the ISAs guide.
The Child Trust Fund then closes. Until the owner decides, the money stays in an account that nobody else can access. If they won’t be able to manage their money at 18, a parent or relative needs to apply to the Court of Protection (in Scotland, the Office of the Public Guardian; in Northern Ireland, the Office of Care and Protection).
Before 18: moving to a Junior ISA
A Child Trust Fund can be transferred into a Junior ISA at any time, and a child can’t have both. The Junior ISA provider arranges the transfer. The yearly limit for new payments is the same for both, £9,000, so the reason to move is usually a better rate, lower charges or a wider choice of investments.
Related guides
- ISAs guide: the ISA types, the allowance and the main choices in one place
- Junior ISAs: the accounts that replaced Child Trust Funds
- ISA transfers: moving money between ISAs
- Saving for a child: the other ways to save for a child