Budget 2008

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 7.
• Further £250 when aged 7 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.