HMRC Encourages Those Born in Eligible Years to Claim £2,242

Young adults may be sitting on a hidden financial asset in the form of unclaimed Child Trust Funds. These accounts were established for every child born between September 1, 2002, and January 2, 2011. Each account received an initial government contribution of at least £250.

Current Status of Child Trust Funds

As of now, over £400 million remains unclaimed in HMRC-allocated Child Trust Fund accounts. The average value of these funds is approximately £2,242 each. HM Revenue and Customs (HMRC) is actively encouraging eligible individuals to claim these funds.

Eligibility and Access

• Individuals must have been born between September 1, 2002, and January 2, 2011.
• Young people can take control of their accounts at age 16.
• Withdrawals are permitted once the individual turns 18.

While minors cannot withdraw funds until they reach 18 years, they can add up to £9,000 annually to their existing accounts.

How to Claim Your Child Trust Fund

For young individuals aware of their Child Trust Fund provider, contacting them directly is advisable. If unsure where to locate the account, the GOV.UK Child Trust Fund locator tool is the recommended resource.

Myrtle Lloyd, HMRC’s Chief Customer Officer, highlighted the significance of these funds for young people embarking on various life paths, such as apprenticeships or university. She emphasized the ease of locating these accounts by searching ‘find my Child Trust Fund’ on GOV.UK.

Steps to Locate Your Fund

To request details of your Child Trust Fund, follow these steps:

• Provide your National Insurance number and date of birth.
• If you lack your National Insurance number, the HMRC app allows you to access and save it.

After submitting the request, individuals should receive a letter from HMRC with the provider’s details within three weeks for online applications. Postal applications may take longer, and if no response is received within six weeks, HMRC can be contacted directly.

Registered Contact Responsibilities

The ‘registered contact’ of a Child Trust Fund account has specific responsibilities until the beneficiary turns 18 or takes control. As the Child Trust Fund scheme has been closed since 2011, individuals may also consider applying for a Junior ISA as an alternative for future savings.

In summary, eligible young adults should take action to claim their potential financial asset, which can significantly aid their future endeavors.