Child Trust Fund: How to claim up to £2,400 for your teenager – Who’s eligible?

A Child Trust Fund is a long term tax free pot you can create for your children. Every year you can put away money for your child for them to access when they are 18, when the account automatically becomes theirs. Now, this September the first accounts of those who are eligible mature – meaning some could get up to £2,400 from their account.

What is a Child Trust Fund?

A CTF is a Government scheme set up by the Labour Government, for children born between September 2002 and January 2011.

Parents received a voucher to deposit into a CTF account for their child – these were worth between £50 and £1,000, depending on when your child was born, and what your income was at the time.

Once the account was opened, you could deposit up to £9,000 per year tax free.

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If parents did not deposit the voucher given to them by the Government, HMRC did it on their behalf.

How much is in each account will vary, but the average amount from stakeholder account provider OneFamily is £2,175.

Investment Company AJ Bell has outlined someone who got two £500 contributions from the Government – and invested it in the stocks and shares CTF would have £2,397 today or £1,336 if it was invested in cash.

You can check if you have a CTF by filling in a form on the GOV.UK website.

As a parent or guardian, if you have a child born in the time period, you are responsible for the account until they turn 16.

You’re the only person who can:

• Tell the account provider how to invest the fund and run the account
• Change the address and other personal details
• Change the type of account, for example from cash to stocks and shares
• Move the account to another provider

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Who is eligible for a Child Trust Fund?

The Child Trust Fund has now been replaced by the Junior ISA.

If you still have a Child Trust Fund for your child, you can still add up to £9,000 per year, even though the scheme is not available for new applicants.

The Junior ISA runs much in the same way as the CTF did.

You can save up to £9000 per child per year, and it’s available for every child in the UK.

There are two types of Junior ISA – a cash Junior ISA, and a stocks and shares Junior ISA.

Your child can have one or both types.

You can get a Junior ISA from a range of banks, building societies, credit unions, friendly societies and stock brokers.

Contact any of these directly for more information about how you can open a Junior ISA with them.

As a parent or guardian, you bear responsibility for the account, but the money you put into it belongs to your child.

The child can take control of the account when they’re 16 – but they cannot withdraw the money until they turn 18.

How can I get my £2,400?

According to HMRC, about 6.3 million CTFs have been set up since the scheme launched in 2002.

You can check if you have a CTF by filling in a form on the GOV.UK website.

You will need your National Insurance Number and your CRN Government Gateway passcode.

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