Industry News - 29th November 2022
If you have children who turned 18 on or after 1 September 2020, there may be cash waiting for them in a dormant Child Trust Fund (CTF).
A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
HMRC has confirmed that there are many thousands of teenagers that have turned 18 since 1 September 2020 and have not yet claimed the cash to which they are entitled. The actual amount of money depends on many factors but could average around £2,100.
An estimated 6.3 million CTF accounts were set up throughout the duration of the scheme, containing about £9 billion. Parents of children born between these dates were sent a voucher to open an account. If the parent or guardian did not set up an account for their child at the time, HMRC opened a savings account on the child’s behalf with a contribution from the government.
If your child was born during this period and is now 18, they can contact their provider directly to access their cash. This might be a bank, building society or other savings provider. If they do not know the provider’s details, they can check and track down the provider using a simple online tool created by HMRC.
HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:
‘Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it. We want to help you access your savings and the money you’re entitled to. To find out more search ‘Child Trust Fund’ on GOV.UK.’
The Child Trust Fund closed in 2011 and was replaced by the Junior ISA.
Get in touch with us for more information.
Website link: www.gov.uk