HMRC has issued a warning to young individuals born between specific dates informing them that they may have a sum of money waiting to be claimed. The tax authority is encouraging people to check if they are entitled to hundreds or even thousands of pounds that might be sitting in a bank account, and the process is simple and cost-free. More than 670,000 young adults aged between 18 and 22 have been identified as potential beneficiaries of unclaimed Child Trust Funds, as revealed by recent data from HMRC. These funds, initiated by Labour in 2005, were made available to children born from September 1, 2002, to January 2, 2011.
Each child received a voucher valued at £250, or £500 for those from lower-income families. Families were then able to contribute up to £9,000 annually, with the child gaining access to the funds upon reaching 18 years of age. If parents failed to establish a Child Trust Fund within a year of receiving the voucher, HMRC created an account on the child’s behalf. Consequently, numerous accounts have been left dormant and remain untouched. Although new Child Trust Fund accounts cannot be opened since the closure of the scheme in 2011, contributions to existing accounts are still permissible.
HMRC’s second permanent secretary and deputy chief executive, Angela MacDonald, stated, “Thousands of Child Trust Fund accounts are sitting unclaimed. We want to reunite young people with their money and we’re making the process as simple as possible. You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.” If individuals are aware of the name of their Child Trust Fund provider, they can directly contact them for more details about their account. However, for those who have lost track of their account, HMRC offers assistance in locating it by completing a form on GOV.UK.
This service is accessible to parents or guardians of children under 18, as well as individuals aged 16 or over searching for their own accounts. To fill out the online form, a National Insurance number and a free Government Gateway account are required. Upon providing the necessary information, HMRC should disclose the name of the Child Trust Fund provider within three weeks. Alternatively, individuals can request details by post by writing to: Charities, Savings and International 1, HMRC, BX9 1AU. It is advisable to include as much pertinent information as possible, such as the account holder’s full name, date of birth, address, and National Insurance number.