A calm, free and easy calculator to estimate monthly income from a Child Trust Fund (CTF) and the potential tax due. Choose your trust type and yields to see a simple breakdown.
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Essential information
Optional projection
Projection is a simple compound interest estimate and ignores capital gains tax and charges. Use for guidance only.
Figures are a simplified guide and exclude some rules (e.g., parental settlement rules, allowances and CGT nuances). Use for guidance only.
As a rule of thumb: bare trusts (simple trusts) are treated as the beneficiary’s assets; interest in possession (IIP) means someone is entitled to the income; discretionary/accumulation gives trustees discretion and is usually taxed at trustee rates. If unsure, check your trust deed or speak to a professional.
Who pays the tax on trust income?
Bare/IIP: typically taxed on the beneficiary (we model beneficiary basic/higher/additional bands). Discretionary: usually taxed on the trustees with a £1,000 standard rate band; we split that £1,000 proportionally between dividends and interest, then apply higher trustee rates above it.
Do you include personal allowances and dividend/personal savings allowances?
No — to keep things simple and avoid guesswork, this tool applies headline rates only. You can choose “No tax/allowances used” to see a pre‑tax view. Real outcomes may be lower after allowances.
What’s the £1,000 standard rate band for discretionary trusts?
The first £1,000 of trust income is taxed at 20% (interest) and 8.75% (dividends). Above that, trustee rates rise to 45% and 39.35%. We allocate the £1,000 across dividends/interest in proportion to their share of total income.
Does the projection include charges, tax on growth or CGT?
No — the projection is a simple compound growth estimate on the fund plus monthly contributions. It ignores fees, capital gains and tax on reinvested income, so it’s best used for a rough sense-check.