Finance Bill Tracking Service 2009 | Budget 2009

BN52 CHILD TRUST FUND: PAYMENTS FOR DISABLED CHILDREN

Who is likely to be affected?

1. Disabled children in receipt of Disability Living Allowance who are born on or after 1 September 2002.

2. Child Trust Fund providers will receive an increased number of government payments.

General description of the measure

3. The Government will contribute £100 every year to the Child Trust Fund accounts of all disabled children, with severely disabled children receiving £200 per year.

Operative date

4. The payments will start in April 2010 for children in receipt of Disability Living Allowance at any point in 2009-10.

Current law and proposed revisions

5. Every eligible child born on or after 1 September 2002 has a Child Trust Fund account. Family and friends can contribute up to £1,200 into the account each year.

6. The Government will make payments of £100 per year into the Child Trust Fund accounts of all disabled children. Severely disabled children (those who receive the High Care element of Disability Living Allowance) will receive £200 per year. These payments will not count towards the £1, 200 yearly contribution limit.

Further advice

7. More information about the Child Trust Fund scheme can be found at www.childtrustfund.gov.uk

8. If you have any questions about this change, please contact Jonathan Bochenski on 020 7147 2957 (email jonathan.bochenski@hmrc.gsi.gov.uk) Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk