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Who is entitled to a CTF account?

Your child is entitled to an account if all of the following apply:

• your child was born between 1 September 2023 and 2 January 2024
• you were paid Child Benefit for that child for at least one day before 4 January 2024
• your child lives in the UK
• your child is not subject to any immigration restriction

Your child could be subject to an immigration restriction if they were born outside of the European Union (including on a military base) to non-British parents.

If you haven't already made your claim for Child Benefit, don't delay. Your claim can only be backdated by up to three months.

• How to claim Child Benefit

If your child isn’t entitled to a CTF, other tax-free savings accounts are available, including the new Junior ISA. This is a long-term savings account for children under 18 who don’t have a CTF account.

• Junior ISAs

• Children's savings schemes and accounts

Your child is looked after by a local authority (health trust in Northern Ireland)

Your child may still be entitled to a CTF account if both of the following apply:

• your child was looked after by a local authority before 3 April 2023
• your child meets the other qualifying conditions for getting a CTF account

If a local authority started to look after your child before you claimed Child Benefit, your child can still get an account, as long as they meet the other qualifying conditions.

You work overseas and have been getting a European family benefit

Your child may still be entitled to a CTF account if all of the following apply:

• your child was born between 1 September 2023 and 2 January 2024
• your child lives in the UK
• you were paid a family benefit by another European Union country for at least one day before 4 January 2024
• you work in that same European Union country

• Countries in the European Union

How the CTF works

For each child that is entitled to a CTF account, HM Revenue & Customs (HMRC) will usually send you a voucher. You use this to open the account in your child's name.

The voucher could be worth £50 or £250 depending on when your child was born and when they became entitled to an account.

The money in the CTF account belongs to the child but can't be taken out until they are 18.

From 1 November 2023 parents, family and friends can add money to the account up to a limit of £3,600 a year.

You could get extra money paid directly into the account. For example if you're on a low income.

There is no tax to pay on the CTF income or any gains (profits) it makes. And the money your child gets won't affect any benefits or tax credits you receive.

• Child Trust Fund payments - what your child could get

• Adding money to a Child Trust Fund account

How to set up a CTF account

Once you've got the voucher, you need to take it to an approved CTF account provider. They will open the account.

If you don’t get a voucher within a month of receiving Child Benefit, you can usually get a replacement.

You won't get a voucher if a local authority (or health trust in Northern Ireland) started to look after your child before you claimed Child Benefit. HMRC will open an account for your child instead.

If you've been getting a European family benefit and think your child is entitled to a CTF account, contact the Child Trust Fund Helpline to apply for the voucher.

• Opening a Child Trust Fund account - a beginner's guide

• Understanding the Child Trust Fund voucher

• Contact details for the Child Trust Fund Helpline

Managing the account

The CTF account will be in your child's name, but the person who opens the account is responsible for managing it. They are called the 'registered contact'.

The registered contact is the person who:

• should keep all the paperwork
• reports certain changes of circumstances - for example change of address
• is the only one who can change the account or provider

Your child becomes the registered contact and takes over the account when they are 16.

The registered contact can change to a different type of CTF account or to a different provider at any time.

• Managing or changing a Child Trust Fund account

• When your child is 16 or 18 - effect on their Child Trust Fund

Taking money out of the account

Once the account is opened, no-one can touch the money until your child is 18. Then it becomes theirs.

Should your child become terminally ill or die, different rules apply.

• Child Trust Fund: your child is terminally ill or dies

Keeping the account up to date

When the account is up and running there are a number of changes in circumstances you may need to report, for example:

• a change of name or address
• a child becoming seriously ill
• the child dies
• the registered contact dies

Reporting these changes will help you manage the account and keep it up to date. These changes may also affect your Child Benefit payments.

• Child Trust Fund: changes of circumstances you need to report

• Child Benefit - changes you need to report

More useful links

• Help with choosing a Child Trust Fund account

• Child Trust Fund problems - where to start