The Child Trust Funds Regulations 2004

[^key-e52a30a2b16ee2b1cb0ac39f5f9a756c]: Reg. 12(s) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 5(b)

[^key-5a385a3298252ac423b7d292a3ca20a1]: Reg. 12(2B)(2C) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 5(c)

[^key-3a0102ba887beeaf285b6c2efcfad1ce]: Reg. 12(2)(qa) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 5(a)(iii)

[^key-1941cb246d04a413bc7f199438bc614c]: Words in reg. 12(2)(a) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 5(a)(i)

[^key-d01a727c0ed7dab603135c18fe040410]: Words in reg. 12(2)(f) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 5(a)(ii)

[^key-9f654641a64e972967e17b6e93830a2e]: Sch. para. 2(2)(a)(viii)-(x) inserted (4.11.2024) by The Child Trust Funds (Amendment) (No. 2) Regulations 2024 (S.I. 2024/1023), regs. 1, 6(2)

[^key-92b84bf0b420bec2180637446e09949f]: Reg. 12(2D)(2E) inserted (15.7.2025) by The Child Trust Funds (Amendment) Regulations 2025 (S.I. 2025/738), regs. 1, 2

Permitted withdrawals from an account where the child is terminally ill

18A

• (1) A person with parental responsibility (or, in Scotland, parental responsibilities) for the named child (including a local authority, but excluding a person under 16), or the named child if 16 or over, may make a claim to the Board, for withdrawals from an account to be permitted in accordance with this regulation.

• (2) The claim shall be—

• (a) made in a manner prescribed by the Board, which shall include the giving of any consent necessary for the verification or consideration of the claim, and

• (b) accepted in either of the following cases:

• Case 1The child:in England and Wales ... falls within either section 72(5) of the Social Security Contributions and Benefits Act 1992 (special rules for terminally ill person’s entitlement to care component of disability living allowance) or section 82(4) of the Welfare Reform Act 2012 (terminal illness); ...in Northern Ireland, falls within section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (the care component) and, for this purpose, section 66(2)(a) of that Act (attendance allowance for the “terminally ill”) is deemed to apply as if for “6 months” there were substituted “12 months.” ; or in Scotland, falls within either of the provisions mentioned in paragraph (i), or is to be regarded as having a terminal illness, in accordance with regulations for disability assistance for children and young people , or regulations for disability assistance for working age people, made under section 31 of the Social Security (Scotland) Act 2018.

• Case 2

• Evidence that the named child is terminally ill has been supplied to the satisfaction of the Board.

• (3) The Board shall issue a letter to the claimant authorising withdrawals from the account under this regulation ....

• (4) Once a claim has been accepted, withdrawals may be made by the registered contact (on behalf of the named child, where he is not the child) at any time—

• (a) provided that, immediately following any withdrawal, a balance sufficient to keep the account open is maintained in the account, and

• (b) excepting any transfer of a policy of life insurance (as opposed to the proceeds from such a policy).

• (5) Where account investments are withdrawn in a form other than sterling currency, regulation 36(1)(b) shall apply (with any necessary modifications) to any such investment immediately before it is withdrawn.

• (6) In this regulation, “terminally ill” has the meaning

• (a) for England and Wales, in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992 or in section 82(4) of the Welfare Reform Act 2012 (terminal illness); ...

• (b) for Northern Ireland, in section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (the care component) and, for this purpose, section 66(2)(a) of that Act (attendance allowance for the “terminally ill”) is deemed to apply as if for “6 months” there were substituted “12 months.” ; or

• (c) for Scotland, as set out in regulations for disability assistance for children and young people, or regulations for disability assistance for working age people, made under section 31 of the Social Security (Scotland) Act 2018.

Account provider ceasing to act (or ceasing to accept Revenue allocated accounts)

Account provider ceasing to qualify

Transfer of accounts to other account providers

Recoupment of Inland Revenue contributions to void accounts (and other accounts)

“Repair” of invalid accounts

The Official Solicitor or Accountant of Court to be the person who has the authority to manage an account

33A

• (1) The person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act is to be the person who has the authority to manage a child’s account for the purposes of section 3(6)(b) of the Act where the circumstances specified in paragraph (2) apply.

• (2) The circumstances specified are where—

• (za) except in a case of a person who was a looked after child or a looked after and accommodated child on 30th September 2017, there is a continuous period of at least twelve months during which the circumstances under sub-paragraphs (a) and (b) apply,

• (zb) in a case of a person who was a looked after child or a looked after and accommodated child on 30th September 2017, the circumstances under sub-paragraphs (a) and (b) apply,

• (a) a child is looked after (in Scotland, looked after and accommodated) by the local authority, and

• (b) at least one of the following conditions is satisfied.

Condition 1There is no person, or no person other than the local authority, who has parental responsibility (in Scotland, parental responsibilities) for the child.

Condition 2It is part of the care plan for the child that—athe child will live indefinitely away from home (or his former home), andbthe child will not have face to face contact with any parent having parental responsibility (in Scotland, parental responsibilities) for the child.

Condition 3An order has been made under section 34(4) of the Children Act 1989 or Article 53(4) of the Children (Northern Ireland) Order 1995, authorising the local authority to refuse to allow contact between the child and any person with parental responsibility (or, in Scotland, a compulsory supervision order or an interim compulsory supervision order is in force and contains a direction regulating contact to the effect that the child has no contact with a person who has parental responsibilities in relation to that child), and there is no other individual with parental responsibility (in Scotland, parental responsibilities) for the child to act as registered contact.In this Condition—a“compulsory supervision order” has the meaning given by section 83 of the Children’s Hearings (Scotland) Act 2011;b“interim compulsory supervision order” has the meaning given by section 86 of that Act; andc“contact direction” means a measure mentioned in section 83(2)(g) of that Act and contained within a compulsory supervision order or an interim compulsory supervision order.

Condition 4The Court of Protection has—aappointed a receiver for a person with parental responsibility for the child, orbdetermined that such a person is a “patient” for the purposes of Part 7 of the Mental Health Act 1983,and there is no other individual with parental responsibility for the child to act as registered contact.In Scotland, in this Condition for—a“Court of Protection” substitute “Sheriff”,b“receiver” substitute “guardian appointed under section 58 of the Adults with Incapacity (Scotland) Act 2000”,cthe reference to a patient, substitute “incapable for the purposes of the Adults with Incapacity (Scotland) Act 2000,” andd“parental responsibility” substitute “parental responsibilities”.

Condition 5The child has been lost or abandoned, and there is no prospect for the foreseeable future of reunification of the child with a parent having parental responsibility (in Scotland, parental responsibilities) for the child.In this Condition, “lost or abandoned”—ain England..., has the meaning in section 20(1)(b) of the Children Act 1989;abin Wales, has the meaning in section 76 of the Social Services and Well-being (Wales) Act 2014;bin Northern Ireland, has the meaning in Article 21(1)(b) of the Children (Northern Ireland) Order 1995; andcin Scotland, has the meaning in section 25(1)(b) of the Children (Scotland) Act 1995.

Condition 6In England and Wales, an adoption agency or local authority has been authorised to place the child for adoption under section 19, or by a placement order under section 21, of the Adoption and Children Act 2002, orin Northern Ireland, an Order has been made under Article 17 or 18 of the Adoption (Northern Ireland) Order 1987 to free the child for adoption.

• (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) The person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act shall cease to be the person who has the authority to manage the child’s account (and shall be discharged from the duties of registered contact) where—

• (a) the child is 16 or over and has elected to manage the account,

• (b) in any case where the child is ... looked after (in Scotland, looked after and accommodated) by a local authority—

• (i) the local authority confirms to the person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act that there is a named responsible person in relation to the child, who is able to be the registered contact for the child’s account, and that none of the Conditions in paragraph (2) applies, and

• (ii) the person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act cancels his declaration and authorisation in accordance with regulation 13(7) and is replaced as registered contact by that responsible person, in accordance with regulation 13(10), or

• (c) in any case where the child ... is not looked after (in Scotland, looked after and accommodated) by a local authority—

• (i) a responsible person for the child provides evidence to the satisfaction of the person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act, as the case may be, that he has parental responsibility for the child, and

• (ii) the person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act cancels his declaration and authorisation in accordance with regulation 13(7) and is replaced as registered contact by that responsible person, in accordance with regulation 13(10).

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In this regulation—

• “local authority” includes an authority within the meaning of the Children (Northern Ireland) Order 1995;

• “looked after and accommodated child”, in Scotland, means a child who is—both looked after, and provided with or placed in accommodation, by a local authority within the meaning of those expressions in Part 2 of the Children (Scotland) Act 1995, oraccommodated by a local authority under section 22 of that Act,and related expressions shall be construed accordingly;

• “looked after child”—in England..., has the meaning given in section 22(1) of the Children Act 1989, extended to include a child accommodated by a local authority under section 17 of that Act, ... in Wales means looked after by a local authority within the meaning of section 74 of the Social Services and Well-being (Wales) Act 2014; and in Northern Ireland, means a child accommodated under Part 4 of the Children (Northern Ireland) Order 1995,and related expressions shall be construed accordingly;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) Where the appointment of a person (“original appointee”) by the Treasury or the Secretary of State by virtue of section 3(10) of the Act ceases, the original appointee must provide any information held by that person in connection with the management of a child trust fund to the new person (if any) appointed instead.

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter 2 of Part 13 of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies

Age 7 payments

7A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yearly disability payments

7B

• (1) A further contribution under section 10 of the Act is due for any eligible child who is entitled in the year 2009/10 or 2010/11 to a disability living allowance, in accordance with paragraphs (2) to (4).

• (2) Where it has been determined that the child is entitled to the care component of a disability living allowance at the highest weekly rate (see section 72(4)(a) of either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992), at any time in the year (whether it is paid or not), the contribution payable for the year shall be £200.

• (3) In any other case where it has been determined that the child is entitled to a disability living allowance at any time in the year (whether it is paid or not), the contribution payable for the year shall be £100.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Her Majesty’s Revenue and Customs must inform the account provider holding the child’s account where an amount is payable to that account under this regulation.

• (6) On receipt of each further contribution from Her Majesty’s Revenue and Customs, the account provider must credit the child’s account with the amount of the payment.

Account provider’s intention to make a bulk transfer of accounts or to cease to act as an account provider

Account provider ceasing to accept Revenue allocated accounts

19A

A person shall give notice to the Board of his intention to cease to accept further Revenue allocated accounts under regulation 6, not less than 30 days before he so ceases.

Account provider ceasing to qualify

Transfer of accounts to other account providers

Recoupment of Inland Revenue contributions to void accounts (and other accounts)

“Repair” of invalid accounts

Transfers to other accounts for children

20A

• (1) An account provider must at the request of the registered contact—

• (a) transfer all the investments under the child trust fund, or an amount representing their value in cash, to a protected child account that is provided by a person chosen by the registered contact, and

• (b) when all the investments have been transferred, close the child trust fund.

• (2) An account is only a protected child account for the purposes of section 7A(2) of the Act if it satisfies the condition of being a junior ISA account within regulation 2B of the Individual Savings Account Regulations 1998.

Transfer of accounts ....

Recoupment of Inland Revenue contributions to void accounts (and other accounts)

“Repair” of invalid accounts

The person appointed by the Treasury or the Secretary of State by virtue of section 3(10) of the Act to be the person who has the authority to manage an account

Maturity of child trust fund - instructions

13A

• (1) Instructions of a holder of a child trust fund to the account provider as to what is to be done with the investments under—

• (a) the child trust fund on its maturity or,

• (b) where regulation 13B(2)(a) applies, the matured CTF account,

are to be in accordance with paragraph (2).

• (2) Those instructions may be—

• (a) where the investments are held otherwise than in cash, to transfer them in specie or to realise them and to transfer the proceeds, or

• (b) where they are held in cash, to transfer the cash amount.

Maturity of child trust fund - no instructions

13B

• (1) On the 18th birthday of the holder of a child trust fund, where no instructions have been given under regulation 13A, all the investments under the child trust fund held immediately before that birthday are to be transferred by the account provider to a protected account held with the account provider.

• (2) The protected account may be, at the option of the account provider, either—

• (a) an account (“matured CTF account”) which is to be treated as a continuing account of the person who held the child trust fund (“account holder”) to be held subject to these regulations and otherwise on the same terms and conditions which applied immediately before the account holder’s 18th birthday as if the investments had remained in the account for the child trust fund; or

• (b) an account, within the meaning of regulation 4 of the Individual Savings Account Regulations 1998, which is a cash account, in respect of investments which are held in cash, or a stocks and shares account, in respect of investments which are held as stocks or shares, to be held subject to those regulations and otherwise on the same terms and conditions which applied immediately before the account holder’s 18th birthday as if the investments had remained in the account for the child trust fund.

• (3) Investments which are held otherwise than in cash are to be transferred in specie.

• (4) In the terms and conditions mentioned in paragraph (2) and in these regulations references to the following howsoever described—

• (a) “account” and “child trust fund” are to be read as including the protected account,

• (b) “named child”, “eligible child” or “child” are to be read as the account holder of the protected account, and

• (c) “registered contact” and “responsible person” are to be read as the account holder of the protected account where instructions, notifications, assessments, actions or decisions need to be made in relation to it.

Matured CTF Account

13C

• (1) Where regulation 13B(2)(a) applies, then notwithstanding any other provision of these regulations, paragraphs (2) to (8) are to apply.

• (2) No subscription is to be made to the matured CTF account.

• (3) Amounts in respect of investments on the matured CTF account are to be credited to it.

• (4) No transfer is to be made of any part of the matured CTF account otherwise than, in circumstances where the account provider intends to cease to act as an account provider, when regulation 19 (account provider’s intention to make a bulk transfer of accounts or to cease to act as an account provider) or 21 (transfer of accounts) applies.

• (5) In regulation 10 (statements for an account)—

• (a) in paragraph (1)(a), the phrase “subject to paragraphs (6) and (7)” is to be treated as omitted,

• (b) the words in paragraph (2A) are to be treated as replaced with—

The account provider must produce a statement not later than 12 months beginning with the date the funds entered the matured account and annually thereafter

, and

• (c) paragraphs (4)... (e), (f) and (m) to (o) are to be treated as omitted.

• (6) Regulations 14(2)(b)(vi) (relating to publication of statements), 18A (permitted withdrawals from an account where the child is terminally ill) and 20A (transfers to other accounts for children) are to be treated as omitted.

• (7) In regulation 32 (returns of information by account provider), paragraphs (2)(b)(i), (ii) and (iv) are to be treated as omitted.

• (8) An account provider must, when all the investments have been transferred out of the matured CTF account in accordance with instructions under regulation 13A, close the account.

Account provider—qualifications and Board’s approval

Account provider—appointment of tax representative

Account provider—withdrawal by Board of approval

Account provider—appeal against non-approval or withdrawal of Board’s approval

Permitted withdrawals from an account

Permitted withdrawals from an account where the child is terminally ill

Account provider’s intention to make a bulk transfer of accounts or to cease to act as an account provider

Account provider ceasing to accept Revenue allocated accounts

Account provider ceasing to qualify

Transfers to other accounts for children

Transfer of accounts ....

Recoupment of Inland Revenue contributions to void accounts (and other accounts)

“Repair” of invalid accounts