Child Trust Funds axed
The Coalition Government has announced that Child Trust Funds are to be abolished for new claimants from 1 January 2011. Money already in existing accounts will remain but there will be no further government contributions. Subject to legislation, the Government intends to reduce government contributions for new babies from August 2010 from £250 to £50 to children in better off families, and from £500 to £100 to children in lower income (maximum child tax credit) families. It will stop government contributions at age 7 after August 2010. The Revenue will stop issuing Child Trust Fund vouchers altogether from January 2011. The recently increased payments for disabled children will be paid for a child who is entitled to disability living allowance at any time in 2010-11, but from 2011-12 onwards, the Government intends that these payments will also stop.
Annual report on tax credits
The Revenue’s 2008-09 annual report to the Treasury on tax credits was published recently. The report contains statistics required by the Tax Credits Act, as follows:
- 5,915,000 tax credit awards
- 43,334 enquiries conducted
- 412 penalties imposed
- 123 prosecutions and 114 convictions for offences in connection with tax credits
Consolidated tax credits legislation
As mentioned in March and April e-bulletins, there have been a lot of amendments to tax credits regulations recently. The main legislation, up to date as of April 2010, is now available from the Revenue in PDF format.
