WELCOME to the York & District Citizen's Advice Bureau monthly advice column. Each month we attempt to answer questions on different subjects - this month it is the new Child Trust Fund.

What is the Child Trust Fund (CTF)?

It's an investment for your child which will grow free of tax. The Government will give money when your child is born and at age seven. You, your family or friends can add up to £1,200 per year. The money belongs to your child and you cannot touch it.

How much will my child receive?

Every child born on or after September 1, 2002, will receive at least £250 to be invested.

At least £250 - Does this mean there could be more?

Yes, if you receive Child Tax Credit and have an income not greater than £13,480 in the tax year 2004/05, you will receive an additional £250.

How and when will the vouchers arrive?

Vouchers will arrive in the post. The first vouchers will be for those born between September 2002 and March 2003 and will be sent out from January 17, 2005. Others will follow shortly.

What do I do with the voucher?

Firstly, you should check that the details are correct. Then send or take the voucher to an establishment which is running a CTF scheme.

What can I invest in?

The Inland Revenue will send out a list of banks, building societies and other financial organisations which are registered to offer a CTF scheme.

What happens when my child becomes 18?

This depends entirely on how the investment has performed and whether you add to the scheme.

York & District CAB is a registered charity (No 509600) offering free impartial, independent and confidential advice.

Contact the York and District Citizen's Advice Bureau at 3 Blossom Street, York, YO24 1AU, phone 0870 126 4850, Fax 01904 620571, or email admin@yorkcab.org.uk. You can get details of all its services on the website at www.yorkcab.org.uk.

Updated: 11:10 Thursday, January 27, 2005