Anyone born between these two dates told by HMRC they could have £2,000 due

A simple 10 minute test can check if the person has a fund - and an estimated 430,000 are unclaimed

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15:29, 18 APR 2024
Updated15:50, 18 APR 2024

An average Child Trust Fund account could have £2,000 sitting in it ready to be claimed, HMRC said (Image: Getty Images)

HM Revenue and Customs has issued an alert that some people could have £2,000 or more sitting in a bank account they’ve forgotten about. Taking to X, formerly Twitter yesterday the government body explained how this could have happened.

It said that anyone who was born between 1 Sep 2002 and 2 Jan 2011 could be in this situation as they were beneficiaries of the Child Trust Fund. And while people got the money - in many cases the HMRC believes that it has been forgotten - and could be vital cash towards education and university.

It said: “Were you born between 1 Sep 2002 and 2 Jan 2011? Check if you have forgotten savings in a Child Trust Fund – worth around £2,000 on average (T&Cs apply).” Child Trust Funds are long-term tax-free savings accounts for children born between the above dates. The government contributes an initial deposit of £250 to the account and then you can continue to add up to £9,000 per year. You don’t have to pay tax on the income or any profit it makes, and it won’t affect any benefits or tax credits you get.

The Child Trust Fund scheme closed in 2011. People who are not sure where the account is held can actually use the HMRC to find it as they can explain where the account was originally opened.

Money that is paid into the account belongs to the child but they can only take it out when they reach 18, although they can take control of the account at age 16. Once they turn 18 no more money can be added to the account, but it can be withdrawn or transferred into an adult ISA and the Child Trust Fund will then close. But until your child withdraws or transfers the money, it will remain in an account that no one else has access to.

HMRC says that almost 430,000 people aged between 18 and 21 still have money sitting in an unclaimed Child Trust Fund without realising and the account could be worth around £2,000.

Anyone wanting to find their Child Trust Fund can use an online tool by clicking here. You can use it if you’re a parent or guardian of a child under 18 or 16 or over and looking for your own trust fund.

Anyone using the above finder will need their National Insurance number. They’ll also need your adoption details if they apply. Parent or guardians looking for a child’s trust fund, will need the child’s full name, address and date of birth and any previous names you or the child have used.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Many 18-21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on.

“I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.”

You’ll get a letter from HMRC with details of the Child Trust Fund provider. You’ll usually get this within 3 weeks of HMRC getting your request. If you do not get a response within 3 weeks, you can write to HMRC. Include your reference number if you have one.