The Child Trust Funds Act 2004 received Royal Assent on Thursday 13 May 2004.
Copies of the Child Trust Funds Act 2004 (Opens new window) and the Explanatory Notes (Opens new window) which explain the Act in non-technical language can be found on Her Majesty’s Stationery Office website. The final Regulatory Impact Assessment (PDF 61K) (Opens new window) is also available.
On 16 September 2004 the Child Trust Funds Act 2004 (Commencement No. 1) Order 2004 (SI 2004/2422) (Opens new window) 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) (Opens new window) was laid providing that the remainder of the Child Trust Funds Act would come into force on 6 April 2005.
On 27 May 2004, the main Child Trust Funds Regulations 2004 (SI 2004/1450) (Opens new window) were laid. The Regulations set out the detail of how the Child Trust Fund scheme will work. A commentary to the Child Trust Funds Regulations 2004 (SI 2004/1450) (PDF 90K) (Opens new window) and an Explanatory Memorandum to the Child Trust Funds Regulations 2004 (SI 2004/1450) (Opens new window) was also published.
A version of the above Regulations incorporating all the changes introduced by the amending Regulation below can be found on the website of the Tax Incentivised Savings Association (TISA) at Consolidated CTF Regulations (CTF Bulletin 49 Draft Changes)
On 14 October 2004, the Child Trust Funds (Amendment) Regulations 2004 (SI 2004/2676) (Opens new window) 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 to the Child Trust Funds (Amendment) Regulations 2004 (SI 2004/2676) (Opens new window) and a commentary to the Child Trust Funds (Amendment) Regulations 2004 (SI 2004/2676)(PDF 55K) were also published.
On 21 December 2004, the Child Trust Funds (Amendment No. 2) Regulations 2004 (SI 2004/3382) (Opens new window) 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 on the Child Trust Funds (Amendment No. 2) Regulations 2004 (SI 2004/3382) (Opens new window) and a commentary on the Child Trust Funds (Amendment No. 2) Regulations 2004 (SI 2004/3382) (PDF 32K) were also published.
On 23 February 2005 the Child Trusts Fund (Amendment) Regulations 2005 (SI 2005/383) (Opens new window) 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 5 April 2005. An Explanatory Memorandum to the Child Trust Fund (Amendment) Regulations 2005 (SI 2005/383) (Opens new window) and a commentary to the Child Trust Fund (Amendment) Regulations 2005 (SI 2005/383) (PDF 16K) was also published.
On 24 March 2005 the Child Trust Funds (Amendment No. 2) Regulations 2005 (SI 2005/909) (Opens new window) were laid. These will enable credit unions to offer cash deposit accounts for the CTF. 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 (HMRC). An explanatory memorandium (Opens new window) 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) (Opens new window) 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 (Opens new window) for these Regulations is also available.
On 31 January 2006 the Child Trust Funds (Amendment) Regulations 2006 (SI 2006/199) (PDF 19K) (opens new window) were laid. These Regulations allow extra flexibility in opening accounts close to the expiry date on the CTF voucher : provided a completed application to open an account has been made on or before the expiry date, there is an extra period of seven days for the voucher to be delivered to the account provider. An Explanatory Memorandum (PDF 18K) (Opens new window) 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) (Opens new window) 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) (Opens new window) 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) (Opens new window) 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) (Opens new window).
On 3 March 2009, The
Child Trusts Funds (Amendment) Regulations 2009 (SI 2009/475) (PDF 48K)
(Opens new window) were laid.
These Regulations provide for government contributions to the CTFs of
eligible children at age seven, 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 three months after payment
of Child Benefit in respect of the child began. Please see the Explanatory
Memorandum (PDF 109K) (Opens new window).
On 16 March 2009, The
Child Trust Funds (Amendment No. 2) Regulations 2009 (SI 2009/694) (PDF
39K) (Opens new window) 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) (Opens new window).
On 22 July 2010, The Child Trust Funds (Amendment No. 3) Regulations 2010 (SI 2010/1894) (PDF 48K) (Opens new window) were made.
These Regulations reduce, for children born after 31 July 2010, the government CTF contributions made - when accounts are opened; to children in low income families; and to children looked after by local authorities. They also end government CTF contributions when a child attains age seven after 31 July 2010. The Regulations further provide for the ending of government CTF contributions to disabled children from 5 April 2011. Please see the Explanatory Memorandum (PDF 25K) (Opens new window).
On 26 October 2010, The Child Trust Funds (Amendment No. 4) Regulations 2010 (SI 2010/2599) (PDF 45K) (Opens new window) were laid
These Regulations allow any CTF provider to stop accepting CTF vouchers after a nominated date but to continue to act as a provider for the CTF accounts it holds. This is subject to the condition that the provider must provide HMRC with written notice of its intention at least 30 days before the nominated date. Please see the Explanatory Memorandum (PDF 21K) (Opens new window).
This Act came into effect on 16 December 2010 and removes eligibility to Child Trust Funds for children born from 3 January 2011 onwards. Copies of the Act Savings Accounts and Health in Pregnancy Grant Act 2010 (Opens new window) can be found on The National Archives website.
CTF 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 (Opens new window) (SI 2005/191) (Opens new window) 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 (Opens new window) is also available.
On 24 March 2005 the Child Trust Funds (Appeals) Regulations 2005 (SI 2005/990) (Opens new window)and the Social Security Commissioners (Procedure) (Child Trust Funds) Regulations 2005 (SI 2005/1031) (Opens new window) were made. Explanatory Memorandums for these are also available. Explanatory Memorandum for Child Trust Funds (Appeals) Regulations 2005 (Opens new window). Explanatory Memorandum for the Social Security Commissioners (Procedure) (Child Trust Funds) Regulations 2005 (PDF 24K) (Opens new window).
Equivalent Regulations for appeals in Northern Ireland - the Child Trust Funds (Appeals) (Northern Ireland) Regulations 2005 (SI 2005/907) (Opens new window). An Explanatory Memorandum (PDF 36K) (Opens new window) is also available.
On 10 October 2006 the Child Trust Funds (Amendment No. 2) Regulations 2006 (SI 2006/2684) (PDF 33K) (Opens new window) were laid. These Regulations revise the requirements for local authorities to notify HMRC 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) (Opens new window) and a commentary (Opens new window) were also published.
