CTF legislation

The Child Trust Funds Act 2004

The Child Trust Funds Act 2004 received Royal Assent on Thursday 13 May 2004.

Copies of the Act and the Explanatory Notes which explain the Act in non-technical language can be found on Her Majesty’s Stationery Office web site. The final Regulatory Impact Assessment (PDF 61K) is also available.

On 16 September 2004 the Child Trust Funds Act 2004 (Commencement No. 1) Order 2004 (SI 2004/2422) was laid. This brought into force certain provisions of the Child Trust Funds Act 2004 from 1 January 2005 to allow accounts to be opened from January for children born since September 2002 in readiness for the main launch in April.

On 20 December 2004 - the Child Trust Funds Act 2004 (Commencement No. 2) Order 2004 (SI 2004/3369) was laid providing that the remainder of the Child Trust Funds Act would come into force on 6 April 2005.

The Child Trust Fund regulations

On 27 May 2004, the main Child Trust Funds Regulations 2004 (SI 2004/1450) were laid. The regulations set out the detail of how the Child Trust Fund scheme will work. A commentary (PDF 90K) and an explanatory memorandium on the regulations was also published.

On 14 October 2004, the Child Trust Funds (Amendment) Regulations 2004 (SI 2004/2676) were laid. These regulations allow early access to the CTF accounts of terminally ill children and include changes to the qualifying investments for the CTF stakeholder account, amendments to the contents and timing of annual statements and the transfer rules, and some minor technical amendments. An explanatory memorandum and a commentary (PDF 55K) were also published.

On 21 December 2004, the Child Trust Funds (Amendment No. 2) Regulations 2004 (SI 2004/3382) were laid. The regulations set out the role of the Official Solicitor and in Scotland the Accountant of Court in managing Child Trust Fund accounts for looked after children who have no one available with parental responsibility to act for them. These regulations also include some minor technical changes. An explanatory memorandum and a commentary (PDF 32K) on the regulations were also published.

On 23rd February 2005 the Child Trusts Fund (Amendment) Regulations 2005 (SI 2005/383) were made. They provide for a further Government contribution for children in families receiving income support or jobseeker's allowance who will not move from those benefits to Child Tax Credit until after 5th April 2005. An explanatory memorandum and a commentary (PDF 16K) on the regulations was also published.

On 24 March 2005 the Child Trust Funds (Amendment No. 2) Regulations 2005 (SI 2005/909) were laid. These will enable credit unions to offer cash deposit accounts for the Child Trust Fund. These regulations also make a small change to the information required from providers in the annual information return that they have to submit to the HM Revenue & Customs. An explanatory memorandium and a commentary on the regulations were also published.

On 6 December 2005 the Child Trust Funds (Amendment No. 3) Regulations 2005 (SI 2005/3349) were laid. These regulations provide that shares or units in non-UCITS retail schemes are qualifying investments for CTFs; allow CTF providers to choose which stakeholder product to use when opening Revenue allocated accounts and allow for Alternative Financial Arrangements to be qualifying investments for CTFs. An explanatory memorandum for these regulations is also available.

On 31 January 2006 the Child Trust Funds (Amendment) Regulations 2006 (SI 2006/199) (PDF 19K) were laid. These regulations allow extra flexibility in opening accounts close to the expiry date on the Child Trust Fund voucher : provided a completed application to open an account has been made on or before the expiry date, there is an extra period of 7 days for the voucher to be delivered to the account provider. An explanatory memorandum (PDF 18K) and a commentary (PDF 18K) were also published.

On 10 October 2006, the Child Trust Funds (Amendments No. 2) Regulations 2006 (SI 2006/2684) (PDF 7K) were laid. These regulations amend the arrangements for children looked after by local authorities and make a minor amendment to the regulations on the characteristics of the stakeholder account. An explanatory memorandum (PDF 30K) and a commentary (PDF 34K) are also available.

On 30 November 2006, The Child Trust Funds (Amendment No. 3) Regulations 2006 (SI 2006/3195) (PDF 41K) were laid.

These regulations exempt from tax annual bonuses paid to building society members who hold a CTF account so far as the bonus is calculated by reference to assets held in the CTF. The bonus does not count towards the annual subscription limit. Demutualisation bonuses are not included in this treatment. Please see the Explanatory Memorandum (PDF 24K).

On 3 March 2009, The Child Trusts Funds (Amendment) Regulations 2009 (SI 2009/475) (PDF 48K) were laid.

These regulations provide for government contributions to the CTFs of eligible children at age 7, and amend the rules for eligibility to the further government contribution on the setting up of a CTF, to cater for cases where a Child Tax Credit claim (the main condition for eligibility to the further contribution) is made more than 3 months after payment of Child Benefit in respect of the child began. Please see the Explanatory Memorandum(PDF 109K).

On 16 March 2009, The Child Trust Funds (Amendment No. 2) Regulations 2009 (SI 2009/694) (PDF 39K) were laid.

These regulations allow CTF providers the option of opening a CTF account without the CTF voucher being handed over. Information from the voucher must be supplied to the provider by the applicant. This will allow providers to accept, for example, telephone applications without requiring the voucher to be sent to complete the account opening process. Please see the Explanatory Memorandum (PDF 159K).

Child Trust Fund appeals regulations

Child Trust Fund appeals will follow the temporary arrangements for Tax Credits and will be heard by appeals tribunals which hear social security appeals. There will be a further right of appeal to the Social Security Commissioners. These arrangements will continue until the planned reform of the Tax Commissioners. However Child Trust Fund appeals against decisions on tax liabilities and reliefs and recovery of tax will be dealt with within the tax appeals system.

On 4 February 2005 the Child Trust Funds (Non-tax Appeals) Regulations 2005 (SI 2005/191) were laid. These regulations make provision for Child Trust Fund appeals under section 22 of the Child Trust Funds Act 2004 and apply and modify for Child Trust Fund purposes certain provisions in Social Security legislation. An explanatory memorandum is also available.

On 24 March 2005 the Child Trust Funds (Appeals) Regulations 2005 (SI 2005/990) and the Social Security Commissioners (Procedure) (Child Trust Funds) Regulations 2005 (SI 2005/1031) were made. Explanatory memorandums for these are also available. Explanatory memorandum for Child Trust Funds (Appeals) Regulations 2005. Explanatory memorandum for the Social Security Commissioners (Procedure) (Child Trust Funds) Regulations 2005 (PDF 24K).

Equivalent regulations for appeals in Northern Ireland - the Child Trust Funds (Appeals) (Northern Ireland) Regulations 2005 (SI 2005/907). An explanatory memorandum (PDF 36K) is also available.

On 10th October 2006 the Child Trust Funds (Amendment No. 2) Regulations 2006 (SI 2006/2684) (PDF 33K) were laid. These regulations revise the requirements for local authorities to notify H.M. Revenue and Customs of children who come to be looked after by the authority; provide for an additional situation where the Official Solicitor will administer CTF accounts of certain children and remove the requirement for providers to pay daily interest on cash deposits for a stakeholder account where the cash is held temporarily pending reinvestment (where the interest can be minimal in amount and an administrative burden). An explanatory memorandum (PDF 30K) and a commentary were also published.