The Child Trust Funds (Amendment) Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Child Trust Funds Regulations 2004 (S.I. 2004/1450) (“the principal Regulations”).

Regulation 3 amends regulation 2 of the principal Regulations to provide that schemes authorised in accordance with section 271A of the Financial Services and Markets Act 2000 are recognised UCITS.

Regulation 4 amends regulation 10 of the principal Regulations so that the child’s address and date of birth are not required to be included in statements for child trust fund accounts.

Regulation 5 amends regulation 12 of the principal Regulations to provide that shares in an investment trust will, if the specified conditions are met, be qualifying investments for a child trust fund account.

Regulation 6 amends regulation 13C of the principal Regulations in consequence of the amendments made by regulation 4 to regulation 10.

Regulation 7 amends regulation 16 of the principal Regulations to provide that withdrawal of the Board’s approval of a person as an account provider only takes effect once all the accounts provided by that person have been transferred to another account provider, and that the account provider must not accept subscriptions or open any new accounts from the date of the notice of withdrawal of approval.

Regulation 8 amends regulation 18A of the principal Regulations to update the definition of terminal illness as it applies to a child in Northern Ireland. As the amendments to the definition of terminal illness made to section 66(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by section 1 of the Social Security (Terminal Illness) Act (Northern Ireland) Act 2022 do not apply for the purposes of the principal Regulations, regulation 18A is amended to take account of those changes.

Regulation 9 amends regulation 19 of the principal Regulations to provide that an account provider must not cease to act until the account has been transferred to another provider.

Regulation 10 amends regulation 20 of the principal Regulations to provide that where an account provider ceases to qualify, and has notified the Board accordingly, that person must not cease to act until the account has been transferred to another provider.

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.