HMRC owes people born between these two dates money | Personal Finance | Finance

HM Revenue and Customs (HMRC) has issued an alert regarding unclaimed funds worth ‘around £2,200’. HMRC said in September an estimated 758,000 people had yet to claim their entitlement.

These savings accounts were set up under a programme launched by a former Labour government in 2005. The Government provided an initial payment of £250, or £500, per child depending on family circumstances.

Parents and carers could add additional funds to the account as they wished, with withdrawals not allowed until the child turned 18.

The tax-free long-term savings accounts were created for every child born between September 1, 2002, and January 2, 2011.

HMRC today 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.”

Details accessed by clicking a link within the alert further explain that the money is held with banks, building societies or other savings providers, staying in the account until withdrawn or reinvested.

You can use an online Gov.uk service to trace 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 request.

If you haven’t received a response within six weeks, you should write 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The funds belong to the child and can only be withdrawn when they turn 18. 

They can assume control of the account when they reach 16. There’s no tax liability on the Child Trust Fund income or any gains it generates, and it doesn’t impact any benefits you receive.