2 days Ago By Katie Elliott
The tax office has urged parents to check if their children can cash in on a savings account worth an average of £2,200. Child Trust Funds are long-term, tax-free savings accounts set up for children born between September 1, 2002, and January 2, 2011, with an initial £250 contributed by the Government. Account holders can take control of their funds at 16 and withdraw the money once they turn 18.
However, many may have forgotten the accounts’ existence, as thousands are yet to be claimed . In a new post on X, HM Revenue and Customs ( HMRC ) said: “Has your child recently turned 18? They may have a Child Trust Fund, worth an average of £2,200. Find out more about how to cash this in.
” HMRC is encouraging individuals to use the free “ Find your Child Trust Fund ” tool on GOV.UK to locate their accounts. The funds remain in the accounts - held by banks, building societies, and other savings providers - until they are withdrawn or reinvested.
Using the official tool is free, and there’s no need to pay third-party agents, who may charge up to £350 or 25% of the account’s value. These services can reduce the amount received and may delay the process, as users still have to provide agents with the same information required to search for the accounts themselves. HMRC typically responds within three weeks of the request with a letter enclosing the details of the trust fund.
Those who don’t get a response within that time frame can write to HMRC instead. Sharon Davies, CEO of Young Enterprise, said: “We would encourage all young people to investigate if they have money which is unclaimed in a Child Trust Fund and to use it wisely.” She added that a “disproportionate amount of the money” is unclaimed by young people from disadvantaged backgrounds, who are the very people who would benefit most from these funds.
The Child Trust Fund scheme closed in 2011, with the option of investing in a Junior Individual Savings Account (ISA) available instead..
