• Olga

Are you one of the missing 2 million?

Date of birth important

· Were you born in the UK between 1st September 2002 and 2nd January 2011?

· If not, do you know anybody who was?

Why are these dates important?

· Back in September 2002, the Government wanted to encourage people to save from an early age so they created the Child Trust Fund (CTF) account.

What is the history behind the CTF?

· It was available to all children born in the UK whose parents were awarded child benefit.

· The government, to get things moving, in the child’s first year, contributed £250 into the account. At the age of 7, the Government topped up the CTF by a further £250.

· In the case of a child born into a low-income family the Government paid in £500 on each occasion.

· Approximately 4.5 million CTFs were set up by parents and guardians and around 1.8 million were created automatically by the UK tax authorities at the time because parents had failed to do so or the child was in local authority care.

What is the CTF?

· Any income or gains arising within the account is completely tax free.

· Parents, family members and friends can top up the CTF each year up to a maximum amount (£9000 for the 2021/22 tax year).

· Although the child can take control of the CTF at the age of 16, they cannot access it until the age of 18.

What is the big concern about the CTF?

· Since September 2020 around 825,000 children have reached the age of 18. An average of 55,000 per month will continue to reach that age going forward.

· It is believed that around 2 million eligible young people are unaware of the existence of their CTF account.

· If the CTF provider (usually a bank or building society) does not hear from the 18 year old then they will transfer the monies into a ‘protected’ tax free account until they do so.

· Even if no additional contributions were added to the CTF over the years, the educated view is that it might be worth around £1,500 or more now.

How do I find out about my CTF?

· If you are unsure about whether or not you have a CTF you should first ask a parent or guardian if they remember setting one up.

· Once you know who the CTF provider is, you should contact them directly – and either request to withdraw the money or transfer the funds into an adult ISA or other savings account.

· If you don’t know who the CTF provider is you can ask HM Revenue and Customs (HMRC) where the account was originally opened by either:

a) Filling in a form online - you’ll need to create a Government Gateway user ID and password if you do not have one

b) Requesting the details by post

Charities, Savings and International 1



· If you was in local authority care then you should contact The Share Foundation charity who oversee these CTFs.

Happy digging!

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