Devon based accountants Peplows are advising new parents not to forget about their Child Trust Fund (CTF) vouchers.  The government automatically issues parents of children born after 2002 with a voucher for £250 once a child benefit award has been made. The voucher then needs to be put into a CTF savings and investment account for their child and another £250 will be paid when the child reaches the age of 7.

According to a recent survey by Nationwide bank however, only 57% of the vouchers issued this year were paid into a CTF.  This equates to £282 million worth of unused vouchers, many of which expire after twelve months.

Jane Logan, Senior Tax Consultant, comments: “The first year of a baby’s life is often hectic for parents.  With so much to do, it is easy to put things like the CTF voucher to one side and forget about it.  The time passes so quickly and before they know it, twelve months has passed.  The government is working hard to encourage a nation of savers, and it would be a shame to let the CTF vouchers expire and miss out on £250 for the child”.

Parents, family and friends can pay up to a total of £1200 each year into a CTF for each child until they reach 18 when the child can have access to the CTF.

For more information contact Jane on 01626 208802.