How do Child Tax Funds work?

Money held in CTFs belongs to the child and is inaccessible until that child reaches 18 years of age.

When a young person or child turns 16, they can legally take over responsibility for their Child Trust Fund account.

Once the child reaches 16, they can make their own decisions about the fun, before switching to another provider and transferring it to a Junior ISA which can be done by contacting their CTF provider.

When the account holder turns 18, they can access and withdraw the money in this account.

The HMRC originally has sent out payment vouchers of £250 or £500, depending on their circumstances, to parents and guardians of qualifying children which could then be used to set up a CTF in the child’s name.