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The wealth of information on this site is available in a handy-sized book. Buy it from your bookseller, or online here.

ISBN 978-1-906439-21-7




Child Trust Fund (CTF)

The UK Government introduced the CTF to help children born on or after 1 September 2002 to build up a cash lump sum which they can spend as they wish when they reach 18. The Government will send a voucher for £250 which can only be used to open a CTF. If the family is eligible for full child tax credit, an additional £250 will be provided. Additional contributions (from the child's family) up to a total of £1,200 a year can also be added. CTFs are free from income and capital gains tax, but fund providers will charge typically 1.5% of the fund per year. Investments can be in equity or cash funds. If you start with the £250 at birth and top up with the maximum of £1,200 per year, a CTF will be worth around £30,000 in real terms at age 18. Not mega-riches but better than nothing!


  9 October, 2008 © 2008 K.R.Wade and Co Ltd prev page next page