Budget 2006

Child Trust Fund

• long term savings and investment account set up by the Government
• applies to all children born after 31 August 2002 living in the UK for whom child benefit can be claimed
• £250 voucher provided to child benefit claimant
• further £250 voucher to those claiming child tax credit
• additional payment by the Government of £250 when aged seven
• further £250 when aged seven to those claiming tax credit
• maximum contribution from parents, family and friends £1,200 per annum
• income and gains arising are tax free
• no access to the fund until the child is aged 18 except on death or terminal illness

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.