HMRC has issued a message to people born between September 2002 and January 2011, urging them to check if they have savings they do not know about. The money could be sitting in a Child Trust Fund, and people across the UK are being asked to check if they have this type of account. According to HMRC, you could have up to £2,200 lying in a trust fund - this is the average amount claimed.
What is a Child Trust Fund?
On Facebook, HMRC said: "Could you be sitting on unclaimed money? If you were born between 1 September 2002 and 2 January 2011, you may have a Child Trust Fund ready to claim once you’re 18."
The Government department has also explained exactly what a Child Trust Fund is. This is a long-term tax-free savings account for children born between those dates. The Child Trust Fund scheme closed in 2011. Since then families have been able to apply for a Junior ISA instead.
Households were able to add up to £9,000 a year to a Child Trust Fund account. The money belongs to the child and they can only take it out when they’re 18. Though, they can take control of the account when they’re 16. There’s no tax to pay on the Child Trust Fund income.
How to find a Child Trust Fund
If you know who the account is with, you can contact your Child Trust Fund provider directly. However, if you do not know the provider, you can ask your parent or guardian. You can also ask HMRC to find a Child Trust Fund provider. They can tell you where the account was originally opened. You’ll be asked for your National Insurance number.
If you’re a parent or guardian looking for a child’s trust fund, you’ll need the child’s full name, address and date of birth and any previous names you or the child have used. You can include the child’s National Insurance number if you have it. You can use this free tool to ask HMRC to find a Child Trust Fund provider. It will not tell you how much money is in a fund. You can ask HMRC for this information if you’re 16 or over and looking for your own trust fund or a parent or guardian of a child under 18.
When your child turns 18
On your child’s 18th birthday, the Child Trust Fund matures. This means that your child automatically takes over the account and no more money can be added. Your child can either take out the money or transfer the money to an adult ISA. The Child Trust Fund will then close.
HMRC says: "Until your child withdraws or transfers the money, it stays in an account that no one else has access to."
