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PART 1U.K.Introductory

Citation and commencementU.K.

1.  These Regulations may be cited as the Child Trust Funds Regulations 2004 and shall come into force for the purposes of—

(a)issuing vouchers (see regulation 3),

(b)completing account-opening formalities (see regulation 5),

(c)applications under regulation 13 to open an account with effect from the appointed day,

(d)applications under regulation 14 to be approved as an account provider to manage accounts from the appointed day,

(e)regulation 17, so far as it relates to applications referred to in paragraph (d),F1...

F1(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

on 1st January 2005, and for all other purposes on the appointed day.

Textual Amendments

F1Reg. 1(f) and word omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Child Trust Funds (Amendment) Regulations 2013 (S.I. 2013/263), reg. 2(4)(a)

InterpretationU.K.

2.—(1) In these Regulations—

(a)the following expressions have the meanings given in the Child Trust Funds Act 2004 (“the Act”)—

(b)except where the context otherwise requires—

(c)

[F52(1A) In these Regulations—

(a)a “bulk transfer of accounts” occurs where two or more accounts are transferred, without a break in the management of the accounts, by an account provider (“the transferor”) direct to another account provider (“the transferee”)—

(i)pursuant to an agreement made between the transferor and the transferee where the transfers are not made pursuant to requests made by the person who is the registered contact in relation to the accounts transferred; or

(ii)pursuant to an insurance business transfer scheme or a banking business transfer scheme under Part 7 (Control of Business Transfers) of FISMA 2000;

F53(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(2) The table below indexes other definitions in these Regulations—

Term definedRegulation
“the applicant”5
“the commencement date”7(8)
“description” of an account4
“the disqualifying circumstances”16
F54. . .F54. . .
F54. . .F54. . .
“initial contribution”7(1)
“interim tax claim”26(2)
“local authority” [F5533A(6)]
“looked after child” [F5533A(6)]
“management agreement”5
“the named child”5 and 8(1)
“qualifying circumstances”14
“qualifying investments for an account”12
F56. . .F56. . .
F54. . .F54. . .
“special contribution”7(1)
“subscription year”9(2)
“supplementary contribution”7(5)
“the termination event”12(12)
“the transfer instructions”8(2)(h)
“the internal transfer instructions”8(2)(i)

Textual Amendments

F2Words in reg. 2(1)(a) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment) Regulations 2009 (S.I. 2009/475), regs. 1(1), 3

F3Words in reg. 2(1)(a) omitted (1.7.2015) by virtue of The Child Trust Funds (Amendment No. 3) Regulations 2015 (S.I. 2015/1371), regs. 1, 3

F7Words in reg. 2(1)(b) substituted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 2 para. 18(2)

F21Words in reg. 2(1)(b) omitted (6.4.2010) by virtue of The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 3(1)(d)

F27Word in reg. 2(1)(b) omitted (6.4.2010) by virtue of The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 3(1)(e)

F34Words in reg. 2(1)(c) omitted (6.4.2010) by virtue of The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 3(2)(a)

F38Words in reg. 2(1)(c) omitted (6.4.2010) by virtue of The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 3(2)(b)

F40Words in reg. 2(1)(c) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 9 (with reg. 3)

F42Words in reg. 2(1)(c) substituted (31.12.2020 immediately after S.I. 2019/713, regs. 10-13 come into force) by The Child Trust Funds (Amendment) Regulations 2020 (S.I. 2020/29), regs. 1(2), 3(b)

F46Words in reg. 2(1)(c) omitted (6.4.2010) by virtue of The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 3(2)(d)

F54Words in reg. 2(2) Table omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Child Trust Funds (Amendment) Regulations 2013 (S.I. 2013/263), reg. 2(4)(b)

F56Words in reg. 2(2) Table omitted (1.7.2015) by virtue of The Child Trust Funds (Amendment No. 3) Regulations 2015 (S.I. 2015/1371), regs. 1, 4(2)

Marginal Citations

M2Number 17 of 1989.

M5O.J. L271, 9.10.2002, p. 16.

VouchersU.K.

3.—(1) The voucher to be issued under section 5(1) of the Act shall contain the following particulars—

(a)the full name of the child,

(b)his date of birth,

(c)his unique reference number,

(d)the [F57short expiry date] of the voucher, and

(e)the amount of the initial contribution (see regulation 7(1)),

and a statement that the voucher cannot be exchanged for money.

(2) The voucher shall be sent to the person who is entitled to child benefit in respect of the child (or, in the case of a child who is an eligible child because of section 2(3) of the Act, to a responsible person in relation to the child) by post.

(3) The expiry date F58... shall be whichever is the earlier of—

(a)the date 12 months from the date of issue of the voucher, or

(b)where the child is over 17 years of age, the date on which he will attain the age of 18 years.

[F59(4) But for references in these Regulations to the short expiry date of the voucher paragraph (3) applies with “60 days” instead of “12 months”.]

Textual Amendments

F57Words in reg. 3(1)(d) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2011 (S.I. 2011/2447), regs. 1(1), 3(a)

F58Words in reg. 3(3) omitted (7.2.2006) by virtue of The Child Trust Funds (Amendment) Regulations 2006 (S.I. 2006/199), regs. 1, 3

F59Reg. 3(4) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2011 (S.I. 2011/2447), regs. 1(1), 3(b)

Descriptions of accountsU.K.

4.—(1) An account may be of either of the following descriptions—

Stakeholder account

Where the account meets the characteristics and conditions in the Schedule to these Regulations.

Non-stakeholder account

Where any of those characteristics or conditions is not met.

(2) Accounts opened by the Inland Revenue (see regulation 6) must be stakeholder accounts.

Opening of account by responsible person or the childU.K.

5.—(1) For the purposes of these Regulations, subject to [F60paragraphs (1A) and (2)], an account is opened for a child (“the named child”) with an account provider on the date the last of the following conditions is satisfied (in any order) where “the applicant” means—

(a)if the named child is 16 or over, the child; and

(b)in any other case, a responsible person in relation to the named child:

Condition 1

The applicant gives the voucher relating to the named child to the account provider [F61not later than 7 days after its [F62short expiry date]] [F63or, where the account provider has chosen to open accounts without sight of the relevant voucher, the applicant gives the following information to the account provider:

(a)the [F62short expiry date] of the voucher,

(b)the amount of the initial contribution as specified on the voucher, and

(c)where the date of birth shown on the voucher differs from the actual date of birth of the child (see regulation 13(5)(c)), the date of birth shown on the voucher].

Condition 2

The applicant enters into an agreement with the account provider (the “management agreement”) for the management of the account (see regulation 8(1) and (2)), which includes the application and declaration required by regulation 13.

Condition 3

Where that application is not in writing the applicant has agreed, or is treated as having agreed, the contents of the copy of the declaration required by regulation 13(3).

Condition 4

(a)In any case where the management agreement is a distance contract, the agreement must be an initial service agreement for the purposes of the Distance Marketing Directive M11, and contain the instructions required by regulation 8(1)(f), and

(b)in every case where there is any right to cancel (or automatic cancellation of) the management agreement, the period during which it may be exercised or occur has expired without that right being exercised or cancellation occurring.

[F64(1A) The application to open the account must be made, and Condition 2 satisfied, not later than the [F65short expiry date] of the voucher.]

(2) An account must satisfy the requirements that—

(a)no subscription to the account is accepted by the account provider until the account has been opened in accordance with paragraph (1); and

(b)where the account is so opened before the appointed day, it shall not be treated as open for the purpose of accepting subscriptions until the appointed day.

Textual Amendments

F62Words in reg. 5(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2011 (S.I. 2011/2447), regs. 1(1), 4

F63Words in reg. 5(1) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 2) Regulations 2009 (S.I. 2009/694), regs. 1(1), 3

F65Words in reg. 5(1A) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2011 (S.I. 2011/2447), regs. 1(1), 4

Marginal Citations

M11O.J. L271, 9.10.2002, p. 16.

Opening of account by Inland Revenue—(Revenue allocated accounts)U.K.

6.—(1) The Board shall apply to open an account for a child to whom section 6 of the Act applies, by forwarding to an account provider the particulars which would be required for a voucher (see regulation 3), but omitting paragraph (1)(d) of that regulation.

(2) The account provider shall immediately open a stakeholder account in the name of the child, which shall have the same effect as if a responsible person for the child (or the child if aged 16 or over) had entered into the account provider’s standard management agreement for the stakeholder account in question, including the terms mentioned in Condition 2 of regulation 5(1) (but treating the reference to the application and declaration required by regulation 13 as a reference to the authorisation required by regulation 13(4)) and regulation 8(1)(f).

(3) The Inland Revenue shall maintain (and update from time to time) a list of account providers who have agreed to accept Revenue allocated accounts under this regulation, in the order of the date of their agreement, and the account provider shall be selected in rotation from the current list.

(4) Where the account provider offers two or more types of stakeholder account

[F66(a)the account provider shall select the type or types to be used for the purposes of this regulation (subject to sub-paragraph (b)),

(b)any type selected must be offered to the general public at the time of opening a Revenue allocated account of that type, and

(c)if more than one type has been selected, the account to be opened shall be chosen by the account provider in rotation between the selected types of accounts.]

[F67(5) The Inland Revenue shall write to the person who is entitled to child benefit in respect of the child (or, in the case of a child who is an eligible child because of section 2(3) of the Act, to a responsible person in relation to the child) to inform them of the opening of the account and particulars of it.]

Textual Amendments

Government contributionsU.K.

7.—(1) The amounts of the contribution for the purposes of section 8(1) of the Act are set out in paragraphs (2) to [F68(4B)], (the amounts set out in paragraphs [F69(2), (4)(a) and (4A)] to be known as the “initial contribution”, and the amounts set out in paragraphs [F70(3), (4)(b) and (4B)] as the “special contribution”).

(2) Where the child is an eligible child on the appointed day by virtue of section 2(1)(a) of the Act (by reason of a child benefit award), and—

(i)was born after 31st August 2002 but before 6th April 2003, the amount is £277,

(ii)was born between 6th April 2003 and 5th April 2004, the amount is £268, and

(iii)was born between 6th April 2004 and the day preceding the appointed day, the amount is £256.

(3) Where the child is an eligible child on the appointed day by virtue of section 2(1)(b) of the Act (by reason of being a child in the care of a local authority at that date) and—

(i)was born after 31st August 2002 but before 6th April 2003, the amount is £554,

(ii)was born between 6th April 2003 and 5th April 2004, the amount is £536, and

(iii)was born between 6th April 2004 and the day preceding the appointed day, the amount is £512.

(4) [F71Subject to paragraphs (4A) and (4B), where] the child [F72becomes an eligible child] on or after the appointed day and—

(a)is first an eligible child by virtue of section 2(1)(a) of the Act, the amount is £250, and

(b)is first an eligible child by virtue of section 2(1)(b) of the Act, the amount is £500.

[F73(4A) Where a child—

(a)is first an eligible child by virtue of section 2(1)(a) of the Act, and

(b)the commencement date for the child (see paragraph (8)) is after the relevant 2010 date (see paragraph (10E)),

the amount is £50.

(4B) Where a child—

(a)is first an eligible child by virtue of section 2(1)(b) of the Act, and

(b)either—

(i)is born on or after the relevant 2010 date, or

(ii)is first in the United Kingdom (other than temporarily) on or after the relevant 2010 date, or

(iii)becomes an eligible child on or after 3 months (less one day) after the relevant 2010 date,

the amount is £100.]

(5) The amounts of the supplementary contribution for the purposes of section 9(2) of the Act (to be known as the “supplementary contribution”) are set out in paragraphs (6) and (7).

(6) Where the child is an eligible child on the appointed day (and is a child to whom section 9 of the Act applies), the amount—

(a)if the commencement date was after 31st August 2002 but before 6th April 2003, is £266,

(b)if the commencement date was between 6th April 2003 and 5th April 2004, is £258,

(c)if the commencement date was between 6th April 2004 and the appointed day, is £250.

(7) [F74Subject to paragraph (7A), where] the child becomes an eligible child after the appointed day (and is a child to whom section 9 of the Act applies), the amount is £250.

[F75(7A) Where the child is one to whom section 9 of the Act applies, and the commencement date for the child is after the relevant 2010 date, the amount is £50.]

(8) The “commencement date”, in relation to a child, means the first day for which child benefit was paid (under a decision mentioned in section 2(6) of the Act) in respect of the child, except that—

(a)where entitlement to child benefit is wholly excluded by a directly applicable Community provision, it means the date on which that exclusion took effect, F76...

F76(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F77(9) The Inland Revenue shall, following final determination of entitlement to child tax credit, write to the person who is entitled to child benefit in respect of the child (or, in the case of a child who is an eligible child because of section 2(3) of the Act, to a responsible person in relation to the child) to inform them that the supplementary contribution is being paid into the child’s account.]

[F78(10) A further contribution under section 10 of the Act of [F79£50] is due for any child where—

(a)the commencement date (for child benefit: see paragraph (8)) in relation to that child is after 5th April 2005, and

(b)income support or income-based jobseeker’s allowance was paid for that commencement date to a person whose applicable amount included an amount in respect of the child.

[F80(10A) A further contribution under section 10 of the Act of [F81£50] is due for any child if—

(a)an account is held by the child,

(b)the child was first an eligible child by virtue of section 2(1)(a) of the Act,

(c)section 9 of the Act does not apply to the child,

(d)a contribution is not, and has not been, due for the child under paragraph (10),

(e)the child is an eligible child on the day identified under the provisions of paragraph (10B) or (10C) as the case may be, and

(f)the condition in paragraph (10B) or (10C) is satisfied in relation to the child.

(10B) The condition in this paragraph is that it has been determined in accordance with the provision made by and by virtue of sections 18 to 21 of the Tax Credits Act 2002—

(a)that a person was, or persons were, entitled to child tax credit in respect of the child for any day falling—

(i)after the commencement date, but

(ii)not later than three months immediately preceding the expiry date of the voucher for the child (see regulation 3), and

(b)that either the relevant income of the person or persons for the tax year in which that day fell does not exceed the income threshold or the person, or either of those persons, was entitled to a relevant social security benefit for that day,

and that determination has not been overturned.

(10C) The condition in this paragraph is that income support, or income-based jobseeker’s allowance, was paid for any day falling—

(a)after the commencement date, but

(b)not later than one month immediately preceding the expiry date of the voucher for the child (see regulation 3),

to a person whose applicable amount included an amount in respect of the child.]

[F82(10D) Her Majesty’s Revenue and Customs must inform the account provider holding the child’s account where an amount is payable to the account under paragraph (10) or (10A).

(10E) In this regulation, “the relevant 2010 date” means—

(a)2nd August 2010; or

(b)if later, the day on which regulation 3 of the Child Trust Funds (Amendment No. 3) Regulations 2010 came into force.]

(11) On receipt of the further contribution [F83mentioned in paragraph (10) or (10A)] from the Inland Revenue the account provider must credit the account held by the child with the amount of the payment.]

Textual Amendments

F76Reg. 7(8)(b) and preceding word omitted (2.8.2010) by virtue of The Child Trust Funds (Amendment No. 3) Regulations 2010 (S.I. 2010/1894), regs. 1(3)(a), 3(7)

F79Sum in reg. 7(10) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2010 (S.I. 2010/1894), regs. 1(3)(a), 3(8)

F80Reg. 7(10A)-(10C) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment) Regulations 2009 (S.I. 2009/475), regs. 1(1), 4(a)

F81Sum in reg. 7(10A) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Child Trust Funds (Amendment No. 3) Regulations 2010 (S.I. 2010/1894), regs. 1(3)(a), 3(8)

F83Words in reg. 7(11) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment) Regulations 2009 (S.I. 2009/475), regs. 1(1), 4(b)

Age 7 paymentsU.K.

F847A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F85Yearly disability paymentsU.K.

7B.—(1) A further contribution under section 10 of the Act is due for any eligible child who is entitled in [F86the 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.

F87(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.]

Textual Amendments

F85Reg. 7B inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Child Trust Funds (Amendment No. 2) Regulations 2010 (S.I. 2010/836), regs. 1(1), 3