Your child is eligible for a Child Trust Fund (CTF) account as long as:
- your child was born on or after 1 September 2002
- your child lives in the UK
- you receive UK Child Benefit for your child and
- your child is not subject to immigration control.
Children born between 1 September 2002 and 5 April 2005 had to be living in the UK on or after 6 April 2005 to be entitled to the CTF.
If the child was born on or after 1 September 2002, but they and/or the parents live outside the UK, then the child’s eligibility varies depending on the circumstances. Eligibility in various circumstances is described below:
Children of Ministry of Defence families and other UK Crown servants
Children of Ministry of Defence families and other UK Crown servants are entitled to Child Benefit and therefore the CTF when based overseas. So long as the child was born on or after 1 September 2002 and Child Benefit has been claimed and awarded for them, the parents or legal guardians will receive an information pack and voucher for that child. However, if the child is subject to immigration restrictions, the child will not be eligible for CTF and the voucher should not be used.
Children who are subject to immigration restrictions
To be eligible for the CTF a child must not be subject to any immigration restrictions. Where a child does not have British parents and is born outside of the EU, including on a military base, they will be subject to immigration restrictions, unless of course they become a UK citizen. This means that they are not entitled to a CTF account, even if they are eligible for Child Benefit and therefore receive a voucher. This may be the case for some children of Ghurkha and Commonwealth soldiers.
Children who live outside the UK who get UK Child Benefit
UK Child Benefit can be paid in respect of children who are not living in the UK, for instance for children of EU nationals who work in the UK while the child still lives in the country of origin. For example, a Greek parent could be working in the UK while his family is still in Greece and be entitled to UK Child Benefit for any children living in Greece.
Often in these situations, however, the child qualifies for Child Benefit by virtue of EC legislation. In this case, the child is not eligible for a CTF account, even if he or she receives a voucher, and therefore the voucher should not be used. When he or she moves to live in the UK, the status of the Child Benefit will have to be reviewed before the child is eligible for a CTF account.
Children living in the UK with Child Benefit paid by another EU country
Children who live with their parents in the UK, but whose parents commute to work and therefore receive Child Benefit in another EU country, may be eligible for the CTF.
Under European Union Regulation 1408/71, which governs the co-ordination of social security for migrant workers within the EU, Child Benefit is normally payable by the country in which the parent works.
Given the geographic position of the UK, the most likely example of this is where a family living in Northern Ireland receives Child Benefit from the Republic of Ireland because the only working parent works in the Republic of Ireland. In these cases Child Benefit is payable by the Republic of Ireland under EU Regulation 1408/71. Since the children live in the UK, in these circumstances they will be entitled to a CTF account, so long as they were born on or after 1 September 2002. However, because they do not receive Child Benefit in the UK, they will have to apply for a CTF voucher from the CTF Office.
Children who left the UK before the CTF was launched
Children born on or after 1 September 2002, who left the UK before the launch of the CTF (on the 6th April 2005) will not be eligible for a CTF account until they return to the UK and Child Benefit is awarded, at which point they will automatically receive a voucher.
Children with CTF accounts who move away from the UK
The account will remain open and family and friends will be able to continue saving in the account. When the child reaches 18 they will be entitled to the money in their CTF account. It is possible to make payments into CTF accounts from abroad.
No further Government contributions, for example the payment when the child turns 7, will be made while the child is away from the UK. Your child will not get this payment unless they are resident in the UK and Child Benefit is in payment for them on their 7th birthday.
Parent is from the UK but living or working abroad
Generally, parents or legal guardians will not be able to claim Child Benefit if they and their children are living abroad, so their child will not get a CTF voucher. If they all return to live in the UK, a voucher enabling a CTF account to be opened will be sent automatically after Child Benefit is awarded for the child (children of Crown servants posted overseas are an exception as Child Benefit can be awarded while parents are abroad).
EU citizens living in the UK
EU citizens living in the UK are entitled to claim Child Benefit subject to various rules. If their child is living in the UK and they are receiving Child Benefit, their child will be eligible for a CTF account.
FAQs
Further information on parents and children outside the UK
