Child Trust Fund Information Hub

What's the latest?

The good news is that the Government has confirmed that Child Trust Funds will not lose their tax advantaged status when they mature.

When your child reaches age 18 their Child Trust Fund with us will automatically become a matured Child Trust Fund account. The Plan will remain substantially the same as before until we receive instructions stating what they would like to do next.

We are not allowed to accept any further contributions into the matured Child Trust Fund.

What happens at age 18?

Your child can continue to save, withdraw or reinvest their money or choose a combination from these options.

Once we have received their instructions your child can:
• Reinvest their money to an adult ISA and continue to save with us
• Withdraw some of their money and reinvest the remainder in an ISA with us
• Withdraw all of their money
• Transfer their money to another provider
• Leave it until they are ready to make their decision

Reinvesting and continuing to save with us

Your child can decide whether they would like to reinvest their money in a Stocks and Shares ISA and/or a Lifetime ISA.

They can save into our ISA from as little as £20 up to their overall allowance of £20,000 each tax year, of which £4,000 can be saved into the Lifetime ISA.

Any money reinvested from their Child Trust Fund does not count towards their annual ISA contributions allowance except for any money moved into the Lifetime ISA, which will count towards their Lifetime ISA allowance for the year.

Save some and take some

They may have earmarked some of the money to spend when they turn 18 so your child has the option of withdrawing some and reinvesting the remainder into an ISA. We have a duty to ensure that we pay only your child as the Planholder so they will need to have a bank account in their name so that we can make the payment. In addition, we may also require proof of their identity.

Withdraw all the money

By withdrawing all their money, the Plan with us will close. We have a duty to ensure that we pay only your child as the Planholder so they will need to have a bank account in their name so that we can make the payment and in addition we may also require proof of their identity.

What happens if we live abroad?

Your child still has the same options; however, the only difference is that if they move their money into a Stocks and Shares ISA and/or a Lifetime ISA, they cannot contribute into the Plan unless they become a UK resident again.

How does my child make their decision?

Your child can get further help and information from us in the way that suits them best whether online, over the telephone or face-to-face advice and use any of these methods to make their decision.

I pay into the Child Trust Fund - what are my options?

When the child reaches age 18 and the Child Trust Fund matures, we will no longer be permitted to accept any further payments into the Plan. However, if the child chooses to continue to save with us, you may still be able to gift into their new Plan.

Of course, you always have the option to take out an ISA or Savings & Investment Plan with us in your own name, whether to save for yourself, or on behalf of the child, or for both of you.

Did you know, you can contribute to a Child Trust Fund held with us online? Find out more >

Tax treatment depends on individual circumstances and may be subject to change in the future. As with all stock market investments the value may fall as well as rise and you may get back less than has been paid in.