Answers · UK 2025/26
Does a Child Trust Fund require a tax return?
No. Income and gains within a Child Trust Fund (CTF) are tax-free. When your child withdraws the fund at age 18, there is no tax liability and no Self Assessment requirement.
Full answer
Child Trust Funds are tax-advantaged savings accounts set up for children born between 1 September 2002 and 2 January 2011. Like ISAs, CTFs are free of UK income tax and CGT on interest, dividends, and gains while funds remain in the account. No tax return is required for CTF income. When a child turns 18 and withdraws the money, the proceeds are not taxable. If the CTF is converted to an adult ISA (which HMRC allows), it retains its tax-free status. Parents who contribute to a CTF do not need to declare those contributions on their own tax return, and there are no gift tax implications as the money belongs to the child. Any contributions above the annual subscription limit (£9,000 per year) are returned to the subscriber.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.