Where do babies come from?

(Pregnant pause.)

While you’re thinking how to answer their inevitable question, we’ll answer some of yours.

Who is eligible?

All new born children are sent a £250 voucher (which must be invested before their first birthday) and an additional contribution on their 7th birthday. You can only apply for a Child Trust Fund if you are 16 or over. To open an account for a child you must have parental responsibility for the child; you may be the child’s natural parent, have legally adopted the child, or have been granted legal authority by the Courts.

When will I receive my voucher?

The CTF voucher will be sent out to you automatically once you start receiving Child Benefit. If you have not received, or have lost the voucher, please refer to the following website which will advise you how to arrange for a voucher to be re-issued: www.childtrustfund.gov.uk

How much does the government contribute – and how much more can be put into the fund?

The government voucher is for £250 (or more for low income families) plus a further contribution on the child’s 7th birthday. Up to £1,200 can be added each year, over and above the voucher value, with the year running from one birthday to the next – and that sum can be made up from contributions from anyone (family, godparents, friends).

What can I invest in?

There are three different Child Trust Fund accounts available, a Cash Account, a Stakeholder account and a Shares account. Jump only offers a Shares account, for more information about Cash and Stakeholder account please click here. The Jump CTF invests is based on the Witan Investment Trust plc, a global equity investment trust.

What’s the tax situation?

Child trust funds are completely free from inheritance, income and capital gains tax. There is no need to worry about tax planning or tax returns, because the investment is for, and owned by, the child.

Who has control of the account?

Any money in the fund belongs to the child and is locked-in until they reach 18, at which point they can decide what they want to do with it. Until the age of 16 the parent or guardian of the child chooses the type of investment, thereafter the child can control investment decisions if they wish, but are unable to make withdrawals until they reach 18.

What happens when the child reaches 18?

When the last statement arrives, in their 17th year, the child is given two options; to roll the fund into an ISA and continue saving, or to receive a cheque (parents may need to be at their most persuasive at this point).

What happens to dividends?

Witan pays two dividends a year, one in April and the other in October, the dividends represent income received from the underlying investments within the Witan portfolio. The income is reinvested to buy more shares and help boost the growth of the Jump CTF. Monthly performance updates are available on the Jump website and valuations are sent out around the child’s birthday.

Can funds be transferred?

Yes, you can transfer from one provider to another, but the voucher can only be invested in a CTF. We make no charge if you want to transfer an existing CTF to Witan. All we require is a completed CTF application form and a transfer form, which can be found by clicking here. 

What are the charges?

Our charges for Jump are low when compared with similar stock market CTF investment plans. We charge a £10 (+VAT) voucher processing fee and a 1% annual management charge subject to a minimum of £10 (+VAT). Please note that all dealing is free with the Jump CTF so there is no charge for additional contributions.