Children born after 31 August 2002, and before 3 January 2011, were entitled to a Child Trust Fund (CTF) account provided they met the necessary conditions. These funds were long-term saving accounts for newly born children. The first of these children began turning 18 on 1 September 2020. One year later, HMRC reports that many thousands of teenagers have not claimed the cash to which they are entitled.
Around 7 million CTF accounts have been set up since the scheme was launched in 2002, roughly 6 million by parents or guardians and a further 1 million set up by HMRC where parents or guardians did not open an account.
Around 55,000 accounts are maturing each month and HMRC has a simple online tool to help young people find out where their account is held.
‘It’s fantastic that so many young people have been able to access the money saved for them in Child Trust Funds but we want to make sure that nobody misses out on the chance to invest in their future.
If you’re unsure if you have an account or where it may be, it is easy to get help from HMRC to track down your provider online.’
The Economic Secretary to the Treasury
The actual CTF accounts are not held by HMRC, but by a number of CTF providers who are financial services firms. Anyone can pay into the account, with an annual limit of £9,000, and there’s no tax to pay on the CTF savings interest or profit.
Source: Informanagement