HMRC has urged Brits to check if they're eligible for a payment of £2,200 through a Child Trust Fund. The tax-free savings account is available for children born between 1 September 2002 and 2 January 2011.
Who can access a Child Trust Fund?
A Child Trust Fund is a long-term tax-free savings account set up for children born in that period. The account can be located by a parent on behalf of a child, or by the child themselves if they are over 16. The scheme closed in 2011, but HMRC says young people can apply to a Junior ISA instead. People cannot have both a Child Trust Fund and a Junior ISA; if they open a Junior ISA, they should ask the provider to transfer the trust fund into it.
People can continue to add up to £9,000 a year to an existing Child Trust Fund account.
What HMRC says about the money
HMRC states: “The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16. There’s no tax to pay on the Child Trust Fund income or any profit it makes. It will not affect any benefits you receive.”
What people need to access the account
To access the account, Brits will need their National Insurance number. They may also need their adoption details if they apply. For parents or guardians looking for a child’s trust fund, they will need the child’s full name, address and date of birth, any previous names the parent or child have used, and the child’s National Insurance number if applicable.
The form must be completed in one go and cannot be saved to return to later. Once done, a letter should be received from HMRC with details of the Child Trust Fund provider, usually within three weeks of HMRC receiving the request if applying online. Postal applications will take longer. If no response is received within six weeks, the next step is to write to HMRC.
