A Child Trust Fund is a long-term tax-free savings account for a child if they were born between 1 September 2002 and 2 January 2011 and were living in the UK.
They have now been replaced by Junior ISAs (see JISA) for new applicants. Under the new JISA rules you can invest up to £4,128 a year and that money will then attract no income or capital gains tax subsequently. However money transferred to a JISA cannot be withdrawn until the child reaches 18 and then it all belongs to the child.