Child Trust Funds

What should I do next?

What options are available to me?

If the child in your life has a Child Trust Fund and is nearing their 18th birthday then it’s time to make a decision. Yes, they could withdraw the investments but doesn’t it make sense for them to continue investing for their future?

If your preference is for them to keep investing for their future, their options are:

Child Trust Fund FAQs

What are the fees associated with a Child Trust Fund?

Annual charge: £25 + VAT (Shares) or 0.7% (Stakeholder) Government stamp duty of 0.5% also applies on purchases of UK shares only.

Please make sure you read the Pre-Sales Cost & Charges Disclosure before you invest. You will need to sign a declaration on our forms that confirms you have read it.

No, any money in your child’s Child Trust Fund (whether a Government contribution or a contribution from your, family members or friends) belongs to your child and will be locked in until they turn 18. At this point your child can choose what to do with the Child Trust Fund.

Until your child reaches 16 you can choose the type of investments held in the Child Trust Fund. From 16, to help your child develop a more thorough understanding of how savings work, they can control the investment decisions should they wish – though they cannot make any withdrawals until they reach 18.

Neither you nor your child will pay any income or Capital Gains Tax in the Child Trust Fund, so your child can make more of the money saved.

No. When your child turns 18, they will have full access to the money to put towards a car, house or university fees, or to spend however they wish. Alternatively, they can leave the money invested until a later date, though the account will stop being a Child Trust Fund on your child’s 18th Birthday.

Which account is right for me?

Share account – our investment trusts invest in a range of asset types in the UK and globally. These include equities, bonds, property and private equity. These investment trusts all benefit from the skills and expertise of our team of fund managers. 

Stakeholder account – this only gives you access to the BMO FTSE All-Shares Tracker Fund. There are also some other differences between the two accounts, as highlighted in the table below.

The Government are no longer issuing Child Trust Fund vouchers but have issued vouchers up to £250 to initiate Child Trust Fund accounts in the past and may also have made additional payments depending on your circumstances.

The maximum that can be invested annually in the 2020/21 tax year is £9,000 and you can invest from as little as £30 a month in line with the child’s birthday.

Lifestyling was a feature of the Stakeholder CTF. It means the shares held in the account were sold gradually so that, by the time the child reaches 18, all the funds were held in cash.

It was originally mandatory for all Stakeholder providers to offer the feature but in 2017, the regulations were changed and it became optional. BMO opted not to implement the feature, for new or existing customer.

All children under the age of 18 are eligible for a Junior ISA. If your child has a Child Trust Fund (CTF), you can also now transfer this to a Junior ISA.


  • Annual charge – £60 + VAT
  • Dealing charge – 0.2% on sales and purchases
  • Government stamp duty of 0.5% also applies on purchase of UK shares only


  • Annual charge – £40 + VAT
  • Dealing charge – £12 postal instruction or £8 per online instructions
  • Government stamp duty of 0.5% also applies on purchase of UK shares only

Let’s talk about risk

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon your individual circumstances.

Put your trust in BMO

Why should you choose to invest with BMO? Here’s a few good reasons


In 2018, BMO was named one of the World’s Most Ethical Companies and ranked the second most reputable among US banks.

Award winning

Best Junior ISA provider – Online Personal Wealth Awards 2019.


BMO is over 200 years old and was Canada’s first bank.

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Confused? Our handy glossary can help explain investing terms.