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Thursday, 25 October 2007 |
MP welcomes news that Dartford parent's are investing their child's Child Trust Fund voucher Dr Stoate said, "I am pleased that a large number of parents are taking up this voucher and choosing where they wish to invest their child's money. These accounts offer all new parents the opportunity to provide savings for their child which will help them in later life." Child Trust Fund Key Facts - a long-term savings and investment account where your child (and no-one else) can withdraw the money when they turn 18
- neither you nor your child will pay tax on income and gains in the account
- £250 voucher to start each child’s account
- children in families receiving Child Tax Credit (CTC), with a household income not greater than the CTC threshold of £14,495 for 2007/08 will receive an extra payment
- a maximum of £1,200 each year can be saved in the account by parents, family or friends
- money cannot be taken out of the Child Trust Fund (CTF) once it has been put in – once your child is 18 they will be able to decide how to use the money
- children can start to make decisions about how the money is managed when they are 16
- the Government will make a further contribution when your child is seven - all eligible children will receive a further payment of £250 into their CTF account at age 7, with children in lower income families receiving an additional £250. These payments will be paid around the child's 7th birthday direct into their account
- not just one type of CTF account – you choose the type of account you want for your child
- at any time you can move the account to a different provider or change the type of account
- it will not affect any benefits or Tax Credits you receive
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