Thousands of Brits could be entitled to a hefty cash boost without even realising it. Cash-strapped households will soon start to feel the full wrath of ‘Awful April’, as energy bills spiral, council tax increases, road tax rises, and even the controversial TV Licence ups its annual fee.
To alleviate the financial sting, HM Revenue & Customs (HMRC) is urging those aged between 14 and 22 to check whether they unknowingly have money sitting in a tax-free savings account. It follows the Child Trust Fund (CTF) scheme which was launched by the government back in the noughties to encourage children to learn how to save.
Each account was opened with a minimum of £250 (or £500 for children from lower-income families) – but the initiative was closed in 2011. There’s no tax to pay on CTF income and it does not impact any benefits or tax credits you receive.
“You can continue to add up to £9,000 a year to an existing Child Trust Fund account,” GOV UK said. “The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16.”
Back in January, it was estimated a whopping 728,000 Brits still have money sitting in their CTF, with around £1.4 billion remaining to be unclaimed. If you were born between September 1, 2002, and January 2, 2011, it’s worth checking to see if you have funds waiting to be claimed.
Even if your parents tell you they didn’t set up an account, it is likely HMRC will have done it for you. Taking to X (formerly Twitter) the body revealed the average amount claimed is a whopping £2,200.
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While calls are growing to make CTF payments automatic, HMRC argued such a move would be too complex. “For us to close these accounts, obtain the savings in those accounts and transfer them with or without the owner’s consent would require careful legal consideration,” a spokesperson added.
Luckily, finding your account is relatively straightforward. If you know your CTF provider, contact them directly. Alternatively, you can ask HMRC to find the provider here.
You’ll be asked for your National Insurance number and your adoption details if they apply. If you’re a parent or guardian looking for a CTF, you’ll need:
20-year-old Latonya Skye-Paterson recently discovered she had a whopping £955 in a Child Trust Fund that she never knew existed, after speaking to her college tutor. You can read her story here.
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