The Child Trust Funds (Amendment) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Child Trust Funds Regulations 2004 (S.I. 2004/1450) (“Child Trust Funds Regulations”) to provide for, when no instructions are received from the holder of a child trust fund, an account provider to transfer all the investments under a child trust fund held by a person immediately before his or her 18th birthday to a protected account under section 7B of the Child Trust Funds Act 2004 (c. 6),

A protected account is to be, at the option of the account provider, either a continuing account of the account for the child trust fund or an individual savings account under the Individual Savings Account Regulations 1998 (S.I. 1998/1870) (“the Individual Savings Account Regulations”).

Regulation 3 makes an amendment to the definition of “recognised UCITS” in regulation 2(1) of the Child Trust Fund Regulations to take account of amendments made under the Financial Services and Markets Act 2000 (c.8). Consequential amendment is made by regulation 5 to regulation 12 of those Regulations.

Regulation 6 inserts new regulations 13A, 13B and 13C into the Child Trust Funds Regulations.

Regulation 13A provides for when instructions are given by the person who holds the child trust fund as to what is to be done with the investments in the child trust fund.

Regulations 13B and 13C provide for when no instructions are given.

Amendment has been made to the Individual Savings Account Regulations to reflect these Regulations which come into force at the same time as these Regulations.

A Tax Information and Impact Note will be published on the HM Government website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.