皇冠体育app

Financial Secretary to the Treasury, Mark Hoban, today announced that the Government will create a new tax-free children鈥檚 savings account. 皇冠体育app new accounts, described as 鈥楯unior ISAs鈥�, will offer parents a simple and tax free way to save for their child鈥檚 future. 皇冠体育app Government will now work closely with stakeholders to finalise the structure of the accounts, and intends for the new accounts to be available by autumn 2011.聽

皇冠体育app Government is committed to encouraging saving for children, within the constraints of the public finances.Following an informal consultation with a range of stakeholders, it is clear that there is an appetite for families to have a clear, simple and tax-free savings option for their children, following the end of Child Trust Fund eligibility from January 2011.聽 聽

皇冠体育app new account will have the following key features:

• All returns will be tax free
• Funds placed in the account will be owned by the child and would be locked in until the child reaches adulthood
• Investments will be available in cash or stocks and shares
• Annual contributions will be capped
• 皇冠体育appre will be no Government contributions into the account

聽Mark Hoban said:

I am committed to ensuring that all parents can save for their children鈥檚 future in a simple and straightforward account. 皇冠体育app introduction of this new account means that we can still offer people a clear way of saving for their children, while saving the half billion pounds a year that we currently spend on Child Trust Funds

Notes for editors

1. On 24 May the Government announced that it would reduce and then stop government contributions to the Child Trust Fund (CTF). This was part of a package of measures designed to make exchequer savings of 拢6.2 billion in 2010-11, to help tackle the UK鈥檚 unprecedented budget deficit. This will save 拢320million this year and over 拢500 million in each future year.聽

2. In July the Government made regulations to reduce payments at birth for children born from August 2010 to 拢50 (reduced from 拢250); or 拢100 (reduced from 拢500) if they are from a lower income family. 皇冠体育app regulations also stopped all government payments at age 7 from August 2010.

3. 皇冠体育app Savings Accounts and Health in Pregnancy Bill, introduced on 15 September, will stop all remaining government payments and end new eligibility for children born from January 2011.

4. Eligibility for the new account will be back dated, to ensure no child born after the end of CTF eligibility will miss out on the chance to have one of the accounts.

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