HMRC says thousands could have £2.2k ‘waiting for them’ | UK | News
Many people have been urged to check whether they could be entitled to thousands of pounds by the HM Revenue and Customs (HMRC). Thousands of Brits could be eligible, with a few steps needed to find out.
Posting on X, HMRC claims that anyone turning 18 this year “could have an average of £2,200 waiting” in a Child Trust Fund. The latest batch of eligible young people would have been born in 2008, with people born before this still eligible to claim any forgotten pots of cash.
What is a Child Trust Fund?
A Child Trust Fund (CTF) is a long-term, tax-free savings and investment account created by the UK Government during Tony Blair’s leadership of the UK for children born between September 1, 2002, and January 2, 2011. Families received initial government vouchers to open these accounts, and the funds become fully accessible to the child when the child turns 18.
The account and all the money within it belong solely to the child. Parents or guardians manage the account until the child turns 16, at which point the child can take over management.
All of these accounts started from UK government contributions of £250 (or £500 for low-income families). Anyone can pay money into a Child Trust Fund account, with a maximum of up to £9,000 allowed to be added per year (going from the child’s birthday to the day before their next birthday).
How to access my Child Trust Fund?
Contact your Child Trust Fund provider directly if you know who the account is with. If you do not know the provider, you can ask your parent or guardian. You can also ask HMRC to find a Child Trust Fund provider and tell you where the account was originally opened.
Before you start, you’ll be asked for your National Insurance number. If you’re a parent or guardian looking for a trust fund on behalf of your child, you’ll need:
- the child’s full name, address and date of birth
- any previous names you or the child have used
- the child’s National Insurance number if you have it
Use this free tool to ask HMRC to find a Child Trust Fund provider. It will not tell you how much money is in a Child Trust Fund.
Once the account holder turns 18, they can contact the provider directly to withdraw or transfer the funds. Before an 18-year-old can access the money, the provider will need to verify their identity to protect the funds. Generally, you will need to provide:
- Proof of identity: Passport, birth certificate, or driving licence.
- Proof of address: A recent utility bill, bank statement, or official letter (dated within the last three months).
At 18, the funds are yours to claim and manage. Young people can either withdraw the cash into their own bank account or move it into a tax-free Adult ISA or Lifetime ISA (LISA).
