HM Revenue and Customs (HMRC) has issued a warning to young individuals born between specific dates, notifying them of possible unclaimed funds in their Child Trust Fund accounts. According to a recent report from the tax authority, over 670,000 young adults aged between 18 and 22 have yet to claim their Child Trust Funds, which have an average value of £2,212. These funds were introduced by the Labour party in 2005 and were available to children born from September 1, 2002, to January 2, 2011.
Each eligible child received a voucher worth £250 (or £500 for those from lower-income families), with families able to contribute up to £9,000 annually. The funds could be accessed by the child upon turning 18. For individuals who haven’t had a Child Trust Fund set up by their parents, HMRC automatically established one on their behalf, resulting in numerous accounts remaining untouched and inactive.
While new Child Trust Fund accounts cannot be opened since the scheme’s closure in 2011, contributions to existing accounts can still be made. HMRC’s second permanent secretary and deputy chief executive, Angela MacDonald, emphasised the importance of reuniting young people with their unclaimed money, making the process simple and accessible.
Young individuals or parents/guardians of children under 18 can use the HMRC service to locate these funds by filling out an online form on GOV.UK. This form requires the individual’s National Insurance number and a free Government Gateway account for verification. Once the necessary information is provided, HMRC aims to identify the Child Trust Fund provider within three weeks.
Alternatively, individuals can request information about their account by post, addressing their query to Charities, Savings, and International 1, HMRC, BX9 1AU. Including details such as the full name, date of birth, address of the account holder, and National Insurance number in the request can aid HMRC in the search process.
HMRC’s initiative aims to ensure that individuals who are entitled to these funds are made aware of them and can access them easily. By checking for unclaimed Child Trust Fund accounts, young people have the opportunity to claim substantial sums that may be rightfully theirs.