Child Trust Fund

This is a Government scheme aimed to encourage people to save. Each child born from September 02 will get £250 (£500 if income is less than £13,500), which must go into a savings account called a Child Trust Fund/Baby Bond.

There are many types of Children’s Savings plans on the market offering various linked investments. Our accountants have been researching these products and to date favour The Children’s Mutual as a preferred choice.

The idea behind this fund, is that parents, family members and friends will be able to add to the money provided by the Government, but the child will not be able to access the funds until they are 18 years old.

Allowances are already being put in place such as Grandparent gifting of £3,000 pa tax free to reduce taxable contributions such as Inheritance Tax.