Maturing Child Trust Funds

Photo by Limor Zellermayer on Unsplash

Last year, the Government consulted on regulations introducing changes to Child Trust Funds (CTFs) and Individual Savings Accounts (ISAs).
As far as Child Trust Funds are concerned, the changes will make provision for the investment in a CTF to be held in a protected account pending instruction in the event that at maturity no instruction has been received from the account holder as to the future of the investments held within the CTF. Funds held in the protected account will retain their tax advantaged status.

Changes are also to be made to the ISA regulations to provide for investments to be transferred to an ISA outside the annual subscription limit.

A summary of responses to the consultation has now been published and is available on the website at draft-regulations-maturing-child-trust- funds. The original consultation is also available.

A policy paper has also been published, which can be found at maturing-child-trust-funds.
Regulations to implement the changes will take effect from 6 April 2020.

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