Illustration only. Investment returns can go down as well as up. Does not include inflation or provider
fees.
Child Trust Fund Myths
Myth: The government takes the money if I don't claim it
False. The money belongs to the child. If not claimed at 18, it is held safely by the
provider in a "protected account" or adult ISA until you contact them. It is never lost to the
government.
Myth: Parents can stop me accessing it at 18
False. Legally, the money becomes solely the child's property on their 18th birthday.
No one else, including parents, can prevent access or withdrawal.
Myth: I have to pay to find a "Lost" account
False. You can find your lost CTF for free using the official HMRC tool. Do not pay third-party services to do this
for you.
Do I pay tax when I withdraw the money?
No. Child Trust Funds are tax-free savings. You do not pay Income Tax or Capital Gains
Tax on the money when you withdraw it at 18.
Is my money protected if the bank fails?
Yes. Your money is protected by the FSCS (Financial Services Compensation Scheme) up to
£120,000 per person, per banking license (limit increased Dec 2025).
Can family add to the pot?
Yes. Anyone—parents, grandparents, or friends—can pay into the account. The total limit
for the 2025/26 tax year is £9,000.