Here’s who can claim the cash
HM Revenue and Customs (HMRC) has issued an alert about unclaimed funds worth ‘around £2,200’. HM Revenue and Customs (HMRC) said in September an estimated 758,000 people had yet to claim their entitlement.
These savings accounts were set up under a scheme launched by a former Labour government in 2005. The Government made an initial contribution of £250, or £500, per child depending on family circumstances. Parents and carers could top up the account as they wished, with withdrawals not allowed until the child turned 18.
The tax-free long-term savings accounts were opened for every child born between September 1, 2002, and January 2, 2011. HMRC said in a post on X, formerly Twitter: “Your child could have an average of £2,200 sitting unclaimed.
“If your child has recently turned 18, they may have a Child Trust Fund waiting for them. Find out if they qualify.” Information found by clicking a link included in the alert further explains that the funds are held with banks, building societies or other savings providers, remaining in the account until withdrawn or reinvested.
You can use an online Gov.uk service to locate their Child Trust Fund provider. After using the online tool, HMRC will send a letter containing the Child Trust Fund provider’s details, usually within three weeks of the initial enquiry.
If you haven’t received a response within six weeks, you should write a letter to HMRC and include your reference number if you have one. Parents can continue to contribute up to £9,000 annually to an existing Child Trust Fund account.
The funds belong to the child and they can only withdraw them when they turn 18.
They can assume control of the account when they reach 16. There’s no tax to pay on the Child Trust Fund income or any profit it generates, and it doesn’t affect any benefits you receive.
