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CTF Age 7 payments update |
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Draft regulations and amendments to the additional payments eligibility rules for Child Trust Fund (CTF) age 7 payments have been laid in Parliament.
On 16 December draft regulations were laid in Parliament providing the legal framework for the universal Age 7 payment of £250, and an additional £250 for children in lower income families. All children looked after by local authorities will get £500. Age 7 payments will work in a very similar way to the initial government payments into CTF accounts. Eligibility will be based on children being in a child benefit award or looked after by a local authority on their seventh birthday. The additional payment will be due if a Child Tax Credit award is in place at any point during the tax year of the child’s seventh birthday, and the household income is under the Child Tax Credit threshold. The universal Age 7 payments will be made shortly after the child’s seventh birthday. The additional Age 7 payments will be made after the end of the tax year in which the child’s seventh birthday falls, once the tax credit award for that year has been finalised. Payments to looked after children will be made once HMRC has received notification from the relevant local authority. The regulations also amend the criteria under which children become eligible for an additional payment so that children do not miss out because a tax credit claim is not made within three months of their birth. Under the new rules the additional payment will be due as long as a Child Tax Credit claim is made before the CTF voucher expires (assuming the other criteria are met). These draft regulations are subject to parliamentary approval and will be debated in both Houses of Parliament.
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Friday, 09 January 2009 |
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