The Child Trust Funds (Amendment) Regulations 2017

Statutory Instruments

2017 No. 185

Child Trust Funds

The Child Trust Funds (Amendment) Regulations 2017

Made

21st February 2017

Laid before Parliament

22nd February 2017

Coming into force

6th April 2017

The Treasury make these Regulations in exercise of the powers in sections 3(1) and (10), 12(2), 15 and 28(1) and (2) of the Child Trust Funds Act 2004(1).

Citation and commencement

1.  These Regulations may be cited as the Child Trust Funds (Amendment) Regulations 2017 and come into force on 6th April 2017.

Amendment of the Child Trust Funds Regulations 2004

2.  The Child Trust Funds Regulations 2004(2) are amended as follows.

3.  In regulation 2 (interpretation)—

(a) in paragraph (1)(b) for the definition of “investment trust”, substitute—

““investment trust”(3) means an investment trust within the meaning of section 1158 of the Corporation Tax Act 2010(4);”; and

(b) in paragraph (2) for “33(1)” in both places it appears, substitute “33A(6)(5)”.

4.  In regulation 9(2) and (3) (annual limit on subscriptions)(6) for “£4,080”, substitute “£4,128”.

5.  In regulation 14(2)(d)(i) (account provider-qualifications and Board’s approval)(7) for “51”, substitute “51ZA, 51ZC, 51ZE(8)”.

6.  In regulation 21 (transfer of accounts) —

(a) in paragraph (4) omit “and the declaration specified in paragraph (6)”;

(b) in paragraph (4A)(9) omit from “and the declaration” to the end; and

(c) omit paragraph (6).

7.  In regulation 33A (The Official Solicitor or Accountant of Court to be the person who has the authority to manage an account)—

(a) in paragraph (2), Condition 5—

(i) in sub-paragraph (a) omit “and Wales”; and

(ii) after that sub-paragraph insert —

“(ab) in Wales, has the meaning in section 76 of the Social Services and Well-being (Wales) Act 2014(10);”; and

(b) in paragraph (6), in the definition of “looked after child”—

(i) in sub-paragraph (a) omit “and Wales” and, at the end, “and”; and

(ii) after that sub-paragraph insert —

“(ab) 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”.

8.  In the Schedule, in paragraph 2 (characteristics of stakeholder account etc.)—

(a) in sub-paragraph (2)(c)(ii) for “; and” substitute“.”;

(b) omit sub-paragraph (2)(d); and

(c) in sub-paragraph (6) omit the definition of “lifestyling”.

Robert Syms

Guto Bebb

Two of the Lords Commissioners of Her Majesty’s Treasury

21st February 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Child Trust Funds Regulations 2004 (S.I.2004/1450) (“the Child Trust Funds Regulations”). They provide for the annual limit on subscriptions to be increased from £4,080 to £4,128 (regulation 4); the removal of the requirement for lifestyling (regulation 8) and make minor changes to take account of changes in other legislation referred to in the Child Trust Funds Regulations.

A Tax Information and Impact Note covering this Instrument will be published on the HM Government website at: https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

(1)

2004 c. 6; section 3(10) was amended by sections 60(1), (2) and 61(1) and (4) of the Deregulation Act 2015 (c. 20).

(2)

S.I.2004/1450. Relevant amending instruments are: S.I.2004/2676, 2004/3382, 2011/781, 2013/472, 2014/649, 2015/876 and 2015/600.

(3)

The definition of “investment trust” was substituted by S.I.2014/649.

(4)

2010 c.4. Section 1158 was substituted by section 49(2) of the Finance Act 2011 (c.11) and amended by section 45 of the Finance Act 2013 (c.29).

(5)

Regulation 33A was inserted by S.I.2004/3382 and paragraph (6) was substituted by S.I.2011/781.

(6)

Regulations 9(2) and (3) were amended by S.I.2015/600.

(7)

Regulation 14(2)(d)(i) was amended by S.I.2013/472.

(8)

S.I.2013/1773 substituted, among others, articles 51ZA, 51ZC and 51ZE for article 51 in the Financial Services and Markets (Regulated Activities) Order 2001 (S.I.2001/544).

(9)

Regulation 21(4A) was inserted by S.I. 2015/876.

(10)

2014 (anaw 4).