Have you forgotten or lost a Child Trust Fund?
A Child Trust Fund is a savings account for children born between 1 September 2002 and 2 January 2011. They’ve since been replaced by Junior ISAs, but those with existing Child Trust Fund accounts or vouchers can still keep their accounts and pay in.
What is a Child Trust Fund and who has one?
A Child Trust Fund (CTF) is a long-term tax-free saving account for children. They were designed to encourage children to become savers for their future adult life. You cannot apply for a new CTF because this government scheme is now closed but you can keep an existing CTF. CTFs were available to all children born in the UK whose parents were awarded Child Benefit between 1 September 2002 and 2 January 2011.
All money earned on the CTF is tax-free, including capital gains, interest payments and any other money earned on the account. This means all the money in the fund belongs to the account holder and none of it will be lost in tax deductions.
The first CTFs matured in September 2020, when the oldest account holders turned 18. The last CTFs will mature in 2029. On maturity, CTFs can either be cashed in or transferred into an adult ISA.
How to locate your child trust fund
Child Trust Funds can be lost to the young person they were set up for. This can be because HMRC set up the account with a starter payment amount on their behalf (if the parents didn’t open one), or because it has been forgotten and the parents have not updated their address.
However, lost accounts can easily be located. You can find out where a lost Child Trust Fund, even if you don’t know the provider.
If you already have a Government Gateway user ID and password, you could fill in the HMRC online form at https://www.gov.uk/child-trust-funds/find-a-child-trust-fund.
HMRC will send you details of the Child Trust Fund provider by post within three weeks of receiving your request.
Alternatively, you can use the Share Foundation to help you find your Child Trust Fund account for free. https://findctf.sharefound.org. You might find this useful if your provider has changed or if you grew up in care.
This information is taken from the government’s website: www.moneyhelper.org.uk
Paddock Wood Community Advice Centre cannot give financial or investment advice, but we can advise on other aspects of money management including budgeting and debt advice.
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