.png)
.png)
The government is to allow savings kept in a child trust fund (CTF) to be transferred to a junior ISA from April 2015. The move follows an HM Treasury consultation that received 761 responses, the overwhelming majority of which expressed support for allowing transfers.
The government is to allow savings kept in a child trust fund (CTF) to be transferred to a junior ISA from April 2015. The move follows an HM Treasury consultation that received 761 responses, the overwhelming majority of which expressed support for allowing transfers.
There are currently 6.1m CTFs in the UK, holding almost £5bn in deposits. They will all be eligible for the shift to tax-advantaged junior ISAs, of which there are 300,000 with a total of £550m.
Children with CTFs are currently ineligible to open junior ISAs, which were launched in November 2011 following the closure of the CTF scheme to new users. Up to £3,840 a year can be put in without incurring tax on interest or gains. Each automatically becomes an adult account on the child’s 18th birthday.
