The Child Trust Funds (Amendment) Regulations 2012

Amendment of the Child Trust Funds Regulations 2004

2.  For paragraph (8) of regulation 12 (qualifying investments for an account) of the Child Trust Funds Regulations 2004(1), substitute—

“(8) A deposit account or share account which is a qualifying investment for an account falling within paragraph (2)(k) or (l) must not be connected with any other investment, held by the named child or any other person.

(8A) For the purposes of paragraph (8), a deposit account or share account described in that paragraph, is connected with another investment if—

(a) either was opened or acquired with reference to the other, or with a view to enabling the other to be opened or acquired on particular terms, or with a view to facilitating the opening or acquisition of the other on particular terms,

(b) the terms on which the deposit account or share account was opened would have been significantly less favourable to the holder if the other investment had not been held, and

(c) the other investment is not a tax exempt investment.

(8B) The following are tax exempt investments for the purposes of paragraph (8A)—

(a) an account investment held under a child trust fund;

(b) an account investment within the meaning given in the Individual Savings Account Regulations 1998(2) held under an account opened (or treated as opened) in accordance with regulation 12 or 12A of those regulations.”.

(1)

S.I. 2004/1450; regulation 12 was amended by S.I. 2010/582.

(2)

S.I. 1998/1870; regulation 12 was amended by S.I. 2001/908, S.I. 2002/1974, S.I. 2002/3158, S.I. 2003/2155, S.I. 2005/3230, S.I. 2005/2078, S.I. 2007/2119, S.I. 2008/704, S.I. 2009/1994 and regulation 12A was inserted by S.I. 2011/1780.