Thousands of young adults could be owed £2,200 they do not even know exists, with HMRC urging people to check for forgotten savings. In a post on October 8, the tax authority encouraged anyone born between September 1, 2002, and January 2, 2011, to check if they have a Child Trust Fund waiting to be claimed once they turn 18.
The average amount claimed from the tax-free savings accounts, which have been discontinued, was £2,200, according to HMRC. In a post on X, it said: "Could you be sitting on unclaimed money? If you were born between 1 September 2002 and 2 Jan 2011, you may have a Child Trust Fund ready to claim once you’re 18."
What are Child Trust Funds?
Child Trust Funds were long-term, tax-free savings accounts opened for children born between September 1, 2002, and January 2, 2011. Although the scheme closed in 2011 to be replaced by the Junior ISA, the accounts still exist, and parents or guardians could deposit up to £9,000 a year into them. Once the account holder turns 18, they can access the money.
If you know which provider holds your savings, you can contact it directly to find out how to access the money. But if you have lost the paperwork or do not know where the account is held, you can use the Government’s free online service to ask HMRC to find your provider.
How to claim your money
You must be aged 16 or over to search for your own account, or be the parent or guardian of a child under 18. You will need details, such as your National Insurance number. HMRC can tell you which provider holds the account, but not how much money is in it. You will need to contact the provider to check the balance. You can use the official service here: Find a Child Trust Fund.
The scheme has since been replaced by Junior ISAs, another way for parents and guardians to save for a child's future. You cannot hold both types of account at the same time, but you can ask a Junior ISA provider to transfer the Child Trust Fund into the new account.
