HMRC has urged parents to take action over the weekend, as children turning 16 or 18 this year may be able to access the savings held in their Child Trust Fund accounts, established by the government when they were born.
The department shared a new alert on X, as reported by the Express: “Has your child recently turned 18? They may have a Child Trust Fund worth an average of £2,200. Find out more about how to cash this in.”
HMRC also offers a ‘Find your Child Trust Fund’ tool on its website that can help you check if you or your child has one of these accounts. The funds will remain in the account until withdrawn or reinvested, and once the account holder turns 18, only they can access the funds.
Child Trust Funds were set up for children born between September 1, 2002, and January 2, 2011. The government initially deposited £250 into each account, but parents could add up to £9,000 a year. On average, these accounts currently hold around £2,200, but many funds are still waiting to be claimed.
Account holders can assume control of their funds when they turn 16, but they can only withdraw the money after turning 18. The process to claim cash is straightforward, and experts advise against using third-party agents, who may charge up to 25% of the account’s value for assistance that you can handle on your own.
If you have the account details, you can visit the bank that holds the account to make a withdrawal. The funds are not subject to income tax, and many people choose to transfer this money into adult ISAs to maintain this tax advantage.
If you do not know the account details, you can request this information from HMRC if you are the parent or guardian of the child account holder who is under 18, or if you are the account holder and at least 16 years old. To do this, you will need to provide the National Insurance number, full name, address, date of birth, and any previous names of the child for whom the account was opened.
Once you submit this information to HMRC, you should receive a letter from the department within three weeks containing the details of the Child Trust Fund provider.
However, if the child was adopted or if you were granted parental responsibility through the courts, you may need to provide additional information to HMRC. This requirement will be specified in a letter following your request to locate the account.
If you were born between 1951 and 1960, you could be entitled to over £2,000 from HMRC due to gaps in your National Insurance contributions.
Many people are missing out on money they’ve rightfully earned — don’t let that be you!
✅ Check your National Insurance record
✅ Fill any gaps before the deadline
✅ Boost your State Pension
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