Child Trust Fund

It is an investment account for children born on or after 1st September 2002 to 31st December 2010.

The Government made payments into the account and other people can also pay money in.

Yes, there are 3 types:

• Stakeholder CTF accounts
• Non-stakeholder CTF share accounts
• Non-stakeholder CTF deposit accounts

The Unity Mutual Child Trust Fund is a Stakeholder Child Trust Fund.

A “Stakeholder” CTF must meet a number of specific conditions which are shown below.

Charges
a) Charges must not be more than 1.5% of the value of the fund you accumulate. If your fund is valued at £250 throughout the year, this means we deduct £3.75 that year. If your fund is valued at £500 throughout the year, this means we deduct £7.50 that year. The charges on all other types of CTF Accounts are not limited in this way. In our CTF Stakeholder Account, this 1.5% charge is incorporated into the calculation of the Unit Price.

b) There can be no other charges.

Investments
a) Investments must be mainly stock market based.

b) Investments must be spread across the shares in a range of companies. Our CTF Stakeholder Account tracks the performance of the UK Equity market and follows the fortunes of over 600 UK companies whose shares can be bought and sold on the Stock Market.

Payments
a) We must accept any payments from £10 provided it is within the subscription limits for that subscription year.

b) You can pay by cheque, direct debit, direct credit or standing order.

Yes – you, your family and your friends can make additional contributions to your child’s Account.

The most that can be paid in is £4,368 in a 'Subscription Year' (birthday to birthday) with effect from 6 April 2019.

Contributions can be made in a number of ways:

• Regular monthly payments by Direct Debit or Standing Order.
• Payments by cheque – made payable to “Unity Mutual” with your child’s name and unique reference number (URN) on the back.
• Payments by direct money transfer – ensuring your child’s URN is quoted in the transfer

The minimum contribution is £10.

The contribution year runs from your child’s birthday to the day before their next birthday.

All money paid into the account belongs to your child, who can only access it when they reach 18.

Until your child reaches age 15, we use the money paid into their CTF to buy units, at the price prevailing at the next valuation date, in the Unity Mutual Equity Fund. The Fund is single priced.

This Fund tracks the performance of the UK Equity market and follows the fortunes of over 600 UK companies whose shares can be bought and sold on the Stock Market. Spreading the investment over such a large group of companies reduces the risk of individual companies not performing too well.

Yes, the Registered Contact can transfer a Child Trust Fund account to us at any time, free of charge.

Whilst we do not accept transfers into our Child Trust Fund, we do accept transfers from an existing Child Trust Fund account into our Junior ISA. Just contact us if you require further information.

To do this, the Registered Contact can contact us or download our transfer form. Once we are in receipt of your completed form we will contact the other provider, once any cancellation period has expired, and arrange the transfer.

The Registered Contact has the right to cancel the transfer if they wish.

There is no fixed term. However, once the child reaches age 18, the money in the Child Trust Fund account will be taxed in the same way as a normal savings or investment account.

Your child can’t take any money out until they are 18.

This depends on a number of things, such as how much has been paid in and the investment returns on the fund where the money is invested.

The value can go up and down.

101% of the value of the account will be paid to the person with parental responsibility for the child.

If this happens before the child is 18, then it may be possible to draw money out of the account for their benefit. Please contact us for further information.

Money held in a Child Tust Fund account is not subject to income or capital gains tax.

Under current legislation the child will not have to pay tax if they draw the money out of the account when they are 18.

The child might have to pay tax if money is left in the account after age 18.

We will issue a statement each year during the month after your child’s birthday showing what has been paid in and what the account is worth.

You can also access our My Fund Value page and view the current value at any time.

Unit prices are published weekly online, or you can contact us for an update.