The Child Trust Fund (Amendment) - HM Revenue & Customs

Impact on
individuals
and
households
Equalities
impacts
Over 6.3 million children have a CTF. The increased subscription
limit will allow more money to be invested in these accounts. It will
benefit those account holders whose CTFs receive the maximum
amount that can be subscribed each year.
How many account holders will be affected will depend on the detail
of subscriptions to individual CTFs. No detailed estimates of the
number of individuals likely to be affected are available.
It is not anticipated that the changes will have a disproportionate
effect on individuals with protected characteristics.
Impact on
business
including
civil society
organisations
Operational
impact (£m)
(HMRC or
other)
Other
impacts
This measure is expected to have a negligible impact on
businesses and civil society organisations. Around 70 financial
institutions currently offer CTFs, each will receive a negligible
benefit in reduced annual administrative burdens, as they will no
longer be required to provide fortnightly returns to HMRC. The
change will result in a negligible one-off implementation cost for
some businesses, if they decide to dismantle systems supporting
the current fortnightly returns.
HMRC will no longer receive and process fortnightly returns from
CTF managers. This will contribute to the reduction in HMRC costs
that will arise from the closedown of the CTF system.
Competition: No competition issues have been raised in response
to the proposals but they should place CTF providers on a more
equal footing with providers of Junior ISAs who, in the absence of
Government contributions, do not have to provide such returns.
Small Firm Impact Test: All CTF managers, regardless of size,
should benefit from these changes, which remove information
requirements upon CTF managers.
Monitoring and evaluation
All aspects of CTF are subject to ongoing review through compliance work, as
well as discussions with account providers and other interested groups.
Further advice
If you have any questions about this change, please contact Simon Turner
on: 0300 054 6588 (email: simon.turner@hmrc.gsi.gov.uk).
Declaration
The Economic Secretary to the Treasury has read this Tax Information and
Impact Note and is satisfied that, given the available evidence, it represents a
reasonable view of the likely costs, benefits and impacts of the measure.