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Child Trust Fund (CTF)

A legacy tax-free savings account for children born between 1 September 2002 and 2 January 2011. Existing CTFs continue to grow tax-free and can be transferred to a JISA.

Key Facts

Eligibility: Children born 1 Sep 2002 – 2 Jan 2011
Annual limit: £9,000 (same as JISA)
Access: Locked until child turns 18
Transfer: Can transfer to a Junior ISA

How It Works

The government provided a £250 or £500 voucher at birth. Parents and others can add up to £9,000 per year. The account grows tax-free until the child turns 18. Can be transferred to a JISA.

Tax Treatment

All interest, dividends, and capital gains are completely tax-free, identical to a JISA.

Tax Advantages

  • All growth is completely free of income tax and CGT
  • Can be transferred to a JISA without losing tax-free status
  • The original government voucher has grown tax-free since deposit

Who Is This Suitable For?

Families with children who already have a CTF. Consider transferring to a JISA for better rates and options.

See Your Full Extraction Plan

Use our free calculator to see how Child Trust Fund fits into your overall tax-efficient extraction strategy.

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Frequently Asked Questions

Should I transfer to a JISA?

Often yes — JISAs typically offer more options and better rates. The transfer preserves the tax-free status.

How do I find a lost CTF?

Contact HMRC's Child Trust Fund helpline or use the GOV.UK online tool.

What happens when the child turns 18?

The account matures and the young person gains full access.

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