More than 750,000 Child Trust Fund accounts in the UK remain unclaimed, with an average of £2,200 sitting in each, according to HMRC. The tax authority is urging eligible young people to check if they have money they don't know about.
The funds were introduced by the Government in 2005 for children born between September 1, 2002, and January 2, 2011. The money belongs to the child and can only be withdrawn once they turn 18, although they can take control of the account at 16.
HMRC urges young people to check for forgotten accounts
Earlier this year, the Government said too many young people were unaware they had a Child Trust Fund, with over 750,000 accounts left unclaimed. HMRC has been promoting the issue on its social media channels, stating: "Did you know your child could have up to £2,200 saved in their name? If they’ve just turned 18, they may have a Child Trust Fund they can access now. Check if they qualify."
Economic Secretary to the Treasury, Lucy Rigby, previously said: "Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life."
How to find a Child Trust Fund
HMRC offers a free "Find My Child Trust Fund" service on GOV.UK, where individuals can check if they have an account by providing their National Insurance number. Some accounts may hold more than £2,200, as up to £9,000 a year can be added to a Child Trust Fund.
There is no tax to pay on the income or profit from a Child Trust Fund, and it will not affect any benefits received. To check for an account, individuals can contact their Child Trust Fund provider directly if they know who it is with, or ask a parent or guardian. Alternatively, HMRC can locate the provider, and a letter with details is usually sent within three weeks of an online application.
