HMRC has issued a warning that thousands of Child Trust Funds remain unclaimed, specifically for individuals born between September 1, 2002, and January 2, 2011. The Labour Party government tax arm urges eligible individuals to check for potential savings accounts set up in their name.
What is a Child Trust Fund?
Child Trust Funds were automatically opened for eligible children, often with an initial government payment, and could be topped up by family and friends. The funds mature when the child turns 18, at which point they can take control of the account or withdraw the money.
How to Find Your Child Trust Fund
If you know who the account is with, contact your Child Trust Fund provider directly. If not, ask your parent or guardian for details. Alternatively, you can request HMRC to locate the provider. HMRC will send a letter with the provider's details within three weeks for online applications; postal applications take longer.
If you do not receive a response within six weeks, you can write to HMRC, including your reference number if available.
Key Details About Child Trust Funds
- You can add up to £9,000 per year to an existing Child Trust Fund account.
- The money belongs to the child and can only be withdrawn at age 18.
- Children can take control of the account at age 16.
- No tax is payable on the fund's income or profits.
- The fund does not affect any benefits you receive.
Upon the child's 18th birthday, the fund matures. The child can either withdraw the money or transfer it to an adult ISA. HMRC emphasizes that the funds belong to the child and cannot be accessed before age 18.
Additional Information
HMRC states: "Could you be sitting on unclaimed money? If you were born between September 1, 2002, and January 2, 2011, you may have a Child Trust Fund ready to claim once you're 18." For further assistance, visit the HMRC website or contact them directly.
