According to HMRC, the average pot of funds is worth around £2,200 (Image: Getty)
HM Revenue and Customs (HMRC) is calling on Brits born within a specific timeframe to verify they haven’t overlooked a windfall potentially worth several thousand pounds. HMRC is alerting those born between 2002 and 2011 that they may have funds « waiting » for them through the Child Trust Fund initiative.
The Child Trust Fund programme was launched by the Labour Government in 2005, established for youngsters born from September 2002 onwards.
At the outset, the Government deposited £250 into these tax-free accounts during a youngster’s first year of life, followed by an additional £250 upon reaching seven years of age. Families on lower incomes received £500 instead.
Relatives were permitted to make additional contributions to these savings accounts throughout the years, with the intention being that young people would have accumulated savings by their 18th birthday.
Nevertheless, the programme was diluted before being abolished entirely in 2011, meaning anyone born during the 2002 to 2011 period qualified for participation.
In a recent announcement, HMRC encouraged people to investigate their eligibility, noting that the typical balance stands at £2,200. HMRC posted on X: « Born between 2002 and 2011? ».
« You could have money waiting for you. You may have a Child Trust Fund, which can be cashed in as soon as you turn 18.
The Government’s official website adds: « The Child Trust Fund scheme closed in 2011. You can apply for a Junior ISA instead.
« You cannot have a Child Trust Fund as well as a Junior ISA . If you open a Junior ISA, ask the provider to transfer the trust fund into it.
« You can continue to add up to £9,000 a year to an existing Child Trust Fund account. The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16. »
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Find your Child Trust Fund
To cash in your fund, contact your Child Trust Fund provider directly if you know who the account is with.
You can also ask HMRC to find a Child Trust Fund provider. They can tell you where the account was originally opened.
You’ll need your National Insurance number. You’ll also need your adoption details if they apply.
If you’re a parent or guardian looking for a child’s trust fund, you’ll need:
- The child’s full name, address and date of birth
- Any previous names you or the child have used
You can include the child’s National Insurance number if you have it. You’ll need to complete the form in one go – you cannot save and return to it.
On the child’s 18th birthday, the Child Trust Fund matures. This means that:
- The child automatically takes over the account
- No more money can be added
They can either take out the money or transfer the money to an adult ISA. The Child Trust Fund will then close. Until your child withdraws or transfers the money, it stays in an account that no one else has access to.
If your child lacks the mental capacity to manage their account when it matures you, or a close friend or relative, need to apply to the Court of Protection (COP) for a financial deputyship order so you can manage your child’s account when they turn 18. Once the account matures, the money can either be taken out or transferred into an ISA.
In Scotland, applications need to be made to the Office of the Public Guardian in Scotland. In Northern Ireland, applications need to be made to the Office of Care and Protection.
For more information, visit the Government website here.
