Child Trust Fund? Completely dissolved?

[bamboostalks]

Does this scrapping mean that we can no longer save for our children in this product to a maximum of £1200 tax free or is it just that the government's contribution is scrapped? Any ideas as I am confused.

It's just the initial contribution that will be scrapped. Anyone can take out a Child Trust Fund and contribute to it. I started one for my son in 2000, for example. And if you already have a Child Trust Fund started with a state voucher then you can keep it going... it's your child's money.

Thanks for that. And you can keep topping it up with the tax free status?

Yes. Whichever Child Trust Fund product you selected at the time they all have tax-free status and you (or friends and family) can keep making contributions until they mature.

More info here...

www.hmrc.gov.uk/chancellors-statement/ctf-announce-qa.pdf

I'm glad they've scrapped it, complete waste of money in my opinion!

I think it's a lovely idea. For a rich country. Which the UK is not at the moment. So yes - am glad it is scrapped too.