Citation and commencement

1. These Regulations may be cited as the Child Trust Funds (Amendment) Regulations 2014 and come into force on 6th April 2014.

Amendment of the Child Trust Funds Regulations 2004

2.The Child Trust Funds Regulations 2004( 2 ) are amended as follows.

3. In regulation 2(1)(b) (interpretation)—

(a) in the definition of “account”, for “section 840A(1)(b) of the Taxes Act” substitute: “section 991(2) of the Income Tax Act 2007( 3 )”;

(b) in the definition of “European institution”, for “paragraph 5(a), (b) or (c)”, substitute: “paragraph 5(a) to (d), (f) and (h)”; and after “under paragraph 12”, insert: “(1) to (4) and (7)”;

(c) for the definition of “investment trust”, substitute—

“ “investment trust” refers to a company that is such a trust for the purposes of the Corporation Tax Acts ( 4 ) , or would be such a trust but for section 1158(3) of the Corporation Tax Act 2010 ( 5 ) ; ” .

4. In regulations 9(2) and 9(3) (annual limit on subscriptions), for “£3,720” substitute “£3,840”.

5. In regulation 12 (qualifying investments for an account)—

(a) in paragraph (2)(f), omit: “, listed in the Official List of the Stock Exchange (see paragraph 3)”;

(b) in paragraph (3), from “An investment” to “admission to trading in paragraph (2)(a)” substitute: “An investment in shares fulfils the conditions as to official listing and admission to trading in paragraph (2)(a)”; and

(c) in paragraph (3)(a), omit “or investment trust”.

6. —(1) In regulation 18A (permitted withdrawals from an account where the child is terminally ill), in paragraph (2)(b), for Case 1 substitute—

“ Case 1

The child:

(i) in England and Wales or Scotland falls within either section 72(5) of the Social Security Contributions and Benefits Act 1992 ( 6 ) (special rules for terminally ill person’s entitlement to care component of disability living allowance) or section 82(4) of the Welfare Reform Act 2012 ( 7 ) (terminal illness); or

(ii) in Northern Ireland, falls within section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ( 8 ) (the care component). ” .

(2) In paragraph (3), after “regulation” omit “, and shall also notify the account provider”.

(3) In paragraph (6)—

(a) after “meaning ” insert: “(a) for England, Wales and Scotland,”;

(b) before the full stop at the end insert: “or in section 82(4) of the Welfare Reform Act 2012 (terminal illness); or (b) for Northern Ireland, in section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (the care component)”.