Child Trust Fund Guide
Everything you need to know about Child Trust Funds (CTFs) in the UK. Learn how to manage, track, or transfer them to maximise your child’s tax-free savings.
Understanding Child Trust Funds
A complete breakdown of how CTFs work, who is eligible, and the steps you can take today to ensure your child’s savings are working as hard as possible.
What is a Child Trust Fund (CTF)?
A Child Trust Fund is a long-term, tax-free savings or investment account designed for children in the UK. The UK government launched the scheme in 2005, providing an initial government voucher to children born between 1 September 2002 and 2 January 2011.
Although the government stopped issuing new vouchers and discontinued the scheme in 2011 (replacing it with the Junior ISA), all existing CTF accounts remain open. They continue to grow completely free of UK Income Tax and Capital Gains Tax until the child reaches the age of 18.
CTF vs. Junior ISA: What’s the Difference?
While both accounts offer tax-free growth for children, the Junior ISA (JISA) is the modern replacement for the CTF. Junior ISAs generally offer a much wider choice of providers, more competitive interest rates for cash accounts, and broader investment options for stocks and shares accounts.
Importantly, a child can only hold one of each type of account at a time (one Cash JISA and one Stocks & Shares JISA, or one CTF). However, you can seamlessly transfer a CTF into a Junior ISA without it counting towards the child’s annual JISA allowance.
How to Find a Lost Child Trust Fund
If you are the parent or legal guardian and have lost track of your child’s CTF provider, the process to find it is straightforward and free:
- Visit the official UK Government website and search for “Find a Child Trust Fund”.
- You will need to sign in using your Government Gateway credentials.
- You must be the child’s parent or have legal responsibility for them.
- HMRC will search their records and send you the details of the account provider by post within 15 working days.
Transferring a CTF to a Junior ISA
Transferring a Child Trust Fund to a Junior ISA is highly recommended if your current CTF is in a low-interest stakeholder account or has high management fees. The transfer process is managed entirely by the new Junior ISA provider:
- Choose a Junior ISA provider (Cash or Stocks & Shares).
- Complete their transfer form, providing the child’s details and CTF account number (if known).
- The new provider will contact the CTF provider and handle the transfer of funds.
- The transfer does not use up any of the child’s annual Junior ISA subscription allowance.
CTF vs. Junior ISA Comparison
A side-by-side look at how the legacy Child Trust Fund compares to the modern Junior ISA.
| Feature | Child Trust Fund (CTF) | Junior ISA (JISA) |
|---|---|---|
| Eligibility | Born between 1 Sep 2002 and 2 Jan 2011 | Under 18 and UK resident |
| Annual Allowance (2024/25) | £9,000 | £9,000 |
| Tax Treatment | Tax-free interest and capital gains | Tax-free interest and capital gains |
| Provider Choice | Limited (often legacy stakeholder accounts) | Wide range of banks, building societies, and investment platforms |
| Access to Funds | Age 18 (locked until then) | Age 18 (locked until then) |
Child Trust Fund FAQ
Answers to the most frequently asked questions about managing and transferring Child Trust Funds.
A Child Trust Fund is a long-term, tax-free savings account for children in the UK. The government stopped offering new CTFs in 2011, replacing them with Junior ISAs, but existing accounts remain open and continue to grow tax-free until the child turns 18.
Yes. You can transfer a Child Trust Fund into a Junior ISA. The transfer process is straightforward and does not affect the child’s annual Junior ISA allowance. This is often recommended as Junior ISAs typically offer a wider range of providers and better interest rates or investment options.
If you have lost track of a child’s CTF, you can use the UK government’s official ‘Find a Child Trust Fund’ online service. You will need to be the child’s parent or legal guardian and have Government Gateway credentials to request the details of the account provider.
The child can take full control of their Child Trust Fund and withdraw the money when they turn 18. Before this age, the funds are locked in, except in very rare circumstances of terminal illness or severe disability.