HMRC may owe people of these ages more than £2,000 each | Personal Finance | Finance
HM Revenue and Customs (HMRC) is urging parents to check if their children might have a forgotten stash in a Child Trust Fund, with the average pot sitting at £2,000. These funds were established for those born between 1 September 2002 and 2 January 2011, with each qualifying child initially receiving £250 or £500 for those from lower-income families.
Parents could contribute up to £9,000 annually to these accounts. If an account wasn’t opened by a parent, HMRC stepped in and did it for them, leaving many young people potentially unaware of cash in their name.
According to recent figures from HMRC there are upwards of 670,000 people aged 18 to 22 haven’t claimed their Child Trust Fund, which on average holds £2,212.
In a statement, HMRC said: “If your child is between 18 and 22, they can cash in their #ChildTrustFund. The average amount claimed is £2,200.”
Although no new Child Trust Funds are being created, existing ones can still receive contributions. Beneficiaries gain access to their funds when they turn 18.
Finding a lost Child Trust Fund
Directly contact your Child Trust Fund provider if you know who they are to enquire about your account. If the account details are misplaced, HMRC offers assistance through a form on GOV.UK.
Both parents or guardians with children under 18, or young adults aged 16 or over, can seek assistance from HMRC to locate a Child Trust Fund.
Thousands of young Brits could be sitting on a goldmine, unaware that they have unclaimed cash in Child Trust Funds.
If you’re hunting for your Child Trust Fund, simply grab your National Insurance number and head to the Government Gateway website to fill out a free online form. Within three weeks, HMRC will point you towards your forgotten stash.
For those who prefer the traditional route, you can also write to Charities, Savings and International 1, HMRC, BX9 1AU. Don’t forget to include your full name, date of birth, current address, and National Insurance number to help them trace your account swiftly.
Last November, Angela MacDonald, HMRC Second Permanent Secretary and Deputy Chief Executive, urged: “Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.”
She added a word of caution against unnecessary expenditure: “You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”
