HM Revenue and Customs have released an urgent briefing suggesting people could be missing a £2,200 windfall this festive season. It has been disclosed that last year, around 430,000 individuals aged between 18-21 were unaware of their unclaimed Child Trust Fund accounts, averaging roughly £2,000 in value.
A fresh call was made today on X with HMRC saying: “Unlock a boost this Christmas by cashing in your #ChildTrustFund. If you’ve turned 18 in the past few years, then you could be missing out on a cash boost. You could cash in up to £2,200 this Christmas from your Child Trust Fund.”
A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011. Find a Child Trust Fund as a parent or if you are over 16. The Child Trust Fund scheme closed in 2011. People can apply for a Junior ISA instead.
Presently, there are 5.3 million active Child Trust Fund accounts. Those aged 16 and above can assume charge over their Child Trust Fund, with withdrawals permitted from the age of 18.
Since September 2020, when the first Child Trust Fund recipients reached maturity at 18, over half a million accounts have been claimed or converted into ISAs.
Paying into a Child Trust Fund
Contributions to a Child Trust Fund are still possible, with annual limits capped at £9,000. The resources securely belong to the offspring and become accessible once they hit the age of majority.
Control of the account is granted at 16, yet access to the funds is restricted until they’re 18.
The Child Trust Fund income and its profits are tax-free and will not impact any benefits or tax credits you receive. More details on Child Trust Funds and how to access the money can be found on GOV.
UK. The Child Trust Fund scheme, which closed in January 2011, was replaced with Junior Individual Savings Accounts (ISA).
If a parent or guardian was unable to set up an account for their child, the government opened a savings account on the child’s behalf. Teenagers or their parents and guardians who already know their Child Trust Fund provider can contact them directly.
This could be a bank, building society or other savings provider.
