Thousands of Unclaimed Child Trust Fund Accounts
HM Revenue & Customs (HMRC) has issued a warning that thousands of young adults could be missing out on up to £2,200 each in unclaimed Child Trust Fund accounts. These tax-free savings accounts were set up for every child born between September 1, 2002 and January 2, 2011, with the government contributing an initial deposit of at least £250.
How to Check for an Account
HMRC is encouraging those eligible to search for a Child Trust Fund account online. A post on X by the government department highlighted that some people could have up to £2,200 in such an account. To make a request, individuals need to provide their National Insurance number and date of birth. Those without their National Insurance number can download the HMRC app to view it and save it in a digital wallet.
Accessing the Funds
Funds can be withdrawn once the child turns 18. Young people aged 16 or over can take control of their own Child Trust Fund, but no money can be withdrawn for another two years. Account holders can continue to add up to £9,000 each year to an existing account, and there is no tax to pay on income or profits.
What to Do If You Find Your Account
For young people who know where their Child Trust Fund is held, they can contact the savings provider directly. After contacting HMRC, applicants should receive a letter with details of the provider, usually within three weeks if applying online. Postal applications take longer; if no response is received within six weeks, individuals can write to HMRC, including their reference number if available.
Responsibilities of the Registered Contact
The main contact for a Child Trust Fund account, known as the 'registered contact', has certain responsibilities until the child turns 18 or until the child takes control of the account.
HMRC's Chief Customer Officer Encourages Action
Myrtle Lloyd, HMRC's Chief Customer Officer, previously said: "Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference. Find yours today by searching 'find my Child Trust Fund' on GOV.UK."
Alternatives: Junior ISA
As the Child Trust Fund scheme closed in 2011, individuals can apply for a Junior ISA (JISA) instead. A JISA is a long-term, tax-free savings or investment account for children, with money becoming accessible at age 18. It is possible to transfer a Child Trust Fund account to a Junior ISA by contacting a JISA provider. The Child Trust Fund provider can also advise on how to change the registered contact of an account.
