Guidance

CTF Bulletin 86

Published 24 January 2019

1. Overview

This bulletin provides information on:

• Child Trust Fund (CTF) annual subscription limits
• annual returns of Information
• implications of changes to financial services passporting for CTF providers

You should send any queries about this bulletin to savings.audit@hmrc.gsi.gov.uk.

Make sure that the appropriate people in your organisation read this bulletin.

2. Child Trust Fund annual subscription limit

The Child Trust Fund subscription limit will also increase to £4,368 in any subscription year from 6 April 2019.

3. Annual returns of information

Under CTF regulation 32, CTF account providers are required to make a return of information to HMRC within either:

• 60 days of the 5 April 2019 such as by 4 June 2019
• 60 days of the date of ceasing to qualify, or act as a provider

Providers must report details of all CTF accounts they managed during the return period including CTFs transferred in and where the child has died. Details of CTF accounts transferred to another provider do not need to be reported to HMRC.

The annual CTF return can only be submitted to HMRC electronically. The return must include details for each CTF account managed during the return period.

You need to include information on:

• the child’s unique reference number
• if the account is a stakeholder account (Type 1) or a non-stakeholder account (Type 2)
• whether or not there is a registered contact for the account
• the aggregate market value of the investments held under the account at 5 April
• the total cash subscribed to the account during the return period ending on 5 April

Chapter 13 of HMRC’s guidance Notes for CTF providers sets out how providers should complete their annual returns.

Technical assistance for CTF providers to submit their digital return to HMRC is available by emailing martyn.broadley@hmrc.gsi.gov.uk.

4. Implications of changes to financial services passporting for CTF providers

In the event the UK leaves the European Union (EU) without agreement there will be changes for CTF providers based in the European Economic Area (EEA).

The Government has previously announced that, if necessary, it would introduce a temporary permissions regime for inbound passporting EEA firms and funds.

This will enable relevant firms and funds which passport into the UK to continue operating in the UK if the passporting regime ends when the UK leaves the EU.

For CTF providers, based in the EEA, you need to know about:

• CTF providers who enter the temporary permissions regime will be able to continue to act as CTF providers

• EEA based CTF providers who do not enter the temporary permissions regime will need to make arrangements for the transfer of their CTF book to another manager in accordance with the CTF regulations

• a temporary permissions regime will also be created for EEA based investment funds which are currently marketed to UK investors under the passporting regime, EEA UCITS funds which enter the temporary permissions regime will remain qualifying investments for CTF, this means that investors will be able to continue to hold existing investments, as well as making new ones

The Financial Conduct Authority has published guidance about how financial services firms should prepare for such a scenario, this includes information about the temporary permissions regime.

If you are an EEA based CTF provider and you would like more information about this, contact us to discuss further, by emailing: savings.audit@hmrc.gsi.gov.uk.