Have you claimed your Child Trust Fund?
Were you born between 1st September 2002 and 2nd January 2011, or do you have children or grandchildren born in this period? Do you know where your/their Child Trust Fund (CTF) is held or how much it is worth?
What are Child Trust Funds (CFTs)?
Child Trust Funds were a tax-free savings scheme for children that operated between 2002 and 2011. The Government started the accounts with a contribution of between £50 and £500 and the CTF account could then accept up to £9,000 per year. The full value of the account is transferred to the child on their 18th birthday.
CTFs started to mature in September 2020 and every month more and more funds become accessible to account holders. However, many account holders and their parents are totally unaware of the accounts and have not claimed the funds they are entitled to. The issue has been compounded by HMRC placing little priority on maintaining CTF records.
The Problem of Unclaimed CTFs
A recent report from HMRC and The Share Foundation has flagged the growing problem of unclaimed CTFs, with an estimated £1.7 billion currently unclaimed. The Government has launched a service for tracking down CTFs – Child Trust Fund: Find a Child Trust Fund – GOV.UK (www.gov.uk) and can provide support to reunite you with your account.
Benefits of CTFs and Junior ISAs
CTFs, and their successor the Junior ISA, offer valuable tax advantages for building up a fund for your children for when they turn 18. Equally, the funds can be rolled over into a new account if the funds are not needed immediately.
If you have your CTF records already, or locate your CTF via the Government service, and would like to discuss the accounts and how they can be used please don’t hesitate to contact us or call us on 01903 534587