Are savings being left unclaimed?
HMRC recently issued a statement saying that millions of pounds belonging to young taxpayers is waiting to be claimed. Where can someone find out if they're entitled to a share?
In 2003 the government set up a tax-free savings scheme for children born on or after 1 September 2002, known as Child Trust Funds (CTFs). They lasted until 2011 when they were replaced by Junior ISAs. The government issued a special voucher for each child which could be used to open a CTF account. Parents and others could pay in more. If the parents didn’t start a CTF the government stepped in and did so automatically. The money in a CTF can only be accessed by the youngster when they turn 18.
There are apparently around 6 million CTFs and according to statistics published by the Treasury around 55,000 mature each month but the money in many of these remains unclaimed. Anecdotal evidence indicates that some parents have forgotten the accounts exist. This might be because they never invested or stopped doing so soon after the CTF was created, or they subsequently separated from their spouse and the CTF was overlooked in the hiatus. Some young people may therefore not know they have money in a CTF.
CTF accounts are managed by many different banks, building societies, etc. and so tracking down an account might seem an impossible task. The first step is for children born between September 2002 and 2 January 2011 to ask their parent or guardian if they are aware of the CTF account and the bank etc. with which it’s held. If that bears fruit they should then contact the bank etc. directly. If the account details can’t be recalled, HMRC has an online tracking tool to help.
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