HMRC alert as Brits born between dates ‘sitting on unclaimed cash’ | Personal Finance | Finance

Young adults are being urged to check whether they are unknowingly sitting on a pot of money – as HMRC warns that thousands of Child Trust Funds remain unclaimed.

In a fresh alert, the tax authority said anyone born between September 1, 2002 and January 2, 2011 could have a savings account waiting for them – potentially worth hundreds or even thousands of pounds. These accounts, known as Child Trust Funds (CTFs), were set up by the Government to give children a financial head start – but many have since been forgotten or lost track of.

Millions of accounts still unclaimed

CTFs were automatically opened for eligible children, often with an initial Government payment, and could then be topped up by family and friends.

But HMRC says large numbers of young people – particularly those who have recently turned 18 – may not realise the money is theirs to claim.

Once the account holder turns 18, they can access the cash in full, with no tax to pay on any interest or gains.

How much could be waiting?

The value of each fund varies depending on contributions and investment performance, but some accounts could now be worth significant sums.

Parents were able to pay in up to £9,000 a year, meaning long-standing accounts may have built up sizeable balances over time.

Crucially, the money belongs solely to the child, and cannot be withdrawn until they reach adulthood – although they can take control of the account from age 16.

How to track it down

HMRC is urging anyone in the eligible age group – or parents of younger children – to track down their account if they are unsure where it is held.

If you don’t know the provider, you can ask HMRC to locate it using a free online tool. You’ll need details such as your National Insurance number and personal information.

The tax office will then write back with the name of the provider – usually within three weeks.

However, it will not tell you how much money is in the account, meaning you will need to contact the provider directly to find out the balance.

Scheme now closed – but money still there

The Child Trust Fund scheme closed in 2011 and was replaced by Junior ISAs, but existing accounts remain active.

Importantly, you cannot hold both a CTF and a Junior ISA at the same time – although funds can be transferred between them if desired.

HMRC said: “Could you be sitting on unclaimed money? If you were born between September 1 2002 and January 2 2011, you may have a Child Trust Fund ready to claim once you’re 18.”

With more teenagers reaching adulthood each year, officials are warning that failing to check could mean missing out on a valuable financial boost just when it is needed most. More details can be found here.