HM Revenue and Customs (HMRC) has again made a call for parents and teenagers to check if they have cash in Child Trust Funds, saying thousands are missing out.

It is the second anniversary of the beginning of Child Trust Fund (CTF) redemptions and HMRC say thousands of Child Trust Fund account remain untouched.

Children born after 1 September 2002 and now aged 18 and 19, are allowed to withdraw funds or transfer savings into an adult ISA. With around 55,000 CTFs maturing every month, HMRC says many thousands remain unclaimed.

  • Child Trust Funds (CTF) were offered between 1 September 2002 and January 2011, with the money accumulated only accessible for withdrawal when the ‘child’ reached 18 years old. 
  • Children born between the years 2002 – 2011 each received free cash vouchers of up to £250.
  • A further £250 was added when the child reached the age of seven. This voucher was worth £500 if you were on a low income.
  • These state grants were invested in an authorised CTF.

HMRC believe some young people may not know they have a CTF or some parents or guardians may have forgotten who they set the account up with. To help them find their accounts, HMRC created a simple online tool.

For those who cannot access the tool, HMRC will provide an alternative non-digital route to finding a CTF provider upon request. HMRC will send details of the provider by post within three weeks of receiving their request.

Useful guides on this topic

Child Trust Fund (CTF)
The Child Trust Fund (CTF) is a long-term, tax-free savings account for children which ran between 2002 and 2011. Existing CTFs can still be used.

ISA guide
Individual Savings Accounts (ISAs) are tax-free savings accounts for qualifying individuals. 

IHT: Gifts
What are the Inheritance Tax (IHT) implications of giving away assets? What exemptions and reliefs are there for gifts?

External links

Find a Child Trust Fund
You can find out where a Child Trust Fund (CTF) is held if you do not know the provider.

Maturing Child Trust Funds
This document gives information about the Regulations to make sure that maturing Child Trust Fund accounts keep their tax-advantaged status.

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