Following consultation, the government had laid final versions of two sets of amending regulations, coming into force from 6 April 2020, allowing investments in child trust fund (CTF) accounts to retain tax-advantaged status after the account holder turns 18, and providing for transfers to ISAs.
The Child Trust Funds (Amendment) Regulations, SI 2020/29, provide for investments in child trust fund accounts to retain their tax-advantaged status beyond the account holder’s 18th birthday, where no instructions have been given, by allowing providers to transfer the investments into a ‘protected account’, pending specific instructions.
The Individual Savings Account (Amendment) Regulations, SI 2020/30, amend the principal ISA regulations to allow savings to be transferred from matured child trust funds without reducing the annual ISA subscription limit.
Following an announcement at Budget 2018, HMRC consulted on drafts of both sets of regulations between June and August 2019.
The first CTF accounts will start to mature in September 2020 as their holders reach 18. Without these changes, the investments would lose their tax-advantaged status. This would be of particular concern in cases where the account holder had become disconnected from their account and could not provide instructions on its future.
Following consultation, the government had laid final versions of two sets of amending regulations, coming into force from 6 April 2020, allowing investments in child trust fund (CTF) accounts to retain tax-advantaged status after the account holder turns 18, and providing for transfers to ISAs.
The Child Trust Funds (Amendment) Regulations, SI 2020/29, provide for investments in child trust fund accounts to retain their tax-advantaged status beyond the account holder’s 18th birthday, where no instructions have been given, by allowing providers to transfer the investments into a ‘protected account’, pending specific instructions.
The Individual Savings Account (Amendment) Regulations, SI 2020/30, amend the principal ISA regulations to allow savings to be transferred from matured child trust funds without reducing the annual ISA subscription limit.
Following an announcement at Budget 2018, HMRC consulted on drafts of both sets of regulations between June and August 2019.
The first CTF accounts will start to mature in September 2020 as their holders reach 18. Without these changes, the investments would lose their tax-advantaged status. This would be of particular concern in cases where the account holder had become disconnected from their account and could not provide instructions on its future.
