HM Revenue and Customs has issued a fresh call for people to check if they have a Child Trust Fund, with around 430,000 young adults potentially missing out on an average of £2,000
People could be in for a cash boost of more than £2,200 the HMRC has said (Image: Getty)
HM Revenue and Customs have issued an urgent alert warning that people could be overlooking a £2,200 boost this Christmas period.
It has been revealed that last year, approximately 430,000 individuals aged between 18-21 remained oblivious to their unclaimed Child Trust Fund accounts, worth on average around £2,000 each.
A renewed appeal was issued today on X, with HMRC declaring: “Parents!If your child has recently turned 18, they may have a #ChildTrustFund, worth an average of £2,200. Find out how they can cash this in below.”
A Child Trust Fund represents a long-term tax-free savings account established for children born between 1 September 2002 and 2 January 2011.
Find a Child Trust Fund as a parent or if you are over 16. The Child Trust Fund scheme closed in 2011. People can apply for a Junior ISA instead.
Currently, there exist 5.3 million active Child Trust Fund accounts. Those aged 16 and over can take control of their Child Trust Fund, whilst withdrawals are allowed from age 18.
Since September 2020, when the initial Child Trust Fund holders reached 18, more than half a million accounts have been claimed or transferred into ISAs.
Paying into a Child Trust Fund
Payments into a Child Trust Fund remain viable, with yearly limits set at £9,000.
The funds legally belong to the child and become available once they reach adulthood. While control of the account is granted at 16, access to the funds is not permitted until the age of 18.
The income and profits from the Child Trust Fund are tax-free and will not affect any benefits or tax credits you may receive. Further information on Child Trust Funds and how to access the money can be found on GOV.UK. The Child Trust Fund scheme, which ended in January 2011, was succeeded by Junior Individual Savings Accounts (ISA).
If a parent or guardian did not set up an account for their child, the government would have opened a savings account on behalf of the child. Teenagers or their parents and guardians who are aware of their Child Trust Fund provider can get in touch with them directly.
This could be a bank, building society or another savings provider.
