HM Revenue & Customs has issued another reminder that Brits born between 2002 and 2011 could have up to £2,200 in a government-backed savings account. HMRC co-opted Woody from Toy Story as it posted about the Child Trust Fund (CTF) on social media on Saturday (June 20).
An image accompanied a tweet from HMRC, showing the iconic character's face and the sole of a boot, with a call to check if you have a CTF written on it, echoing a famous Woody catchphrase: "There's a snake in my boot." The post came on the opening weekend of Toy Story 5, which tells a cautionary tale about tech.
The country's tax collector posted on X: "There’s a Child Trust Fund in your boot! If you were born between 2002 and 2011, you could have up to £2,200 in a Child Trust Fund. Check if you have one today."
What is a Child Trust Fund?
A Child Trust Fund is a tax-free savings account for children born between September 1, 2002, and January 2, 2011. It was set up under former prime minister Sir Tony Blair's Labour administration, with an aim to help get young people into employment and higher education. Child Trust Funds were scrapped by the coalition government, with all payments ended in January 2011.
Initially, the government deposited £250 into account, adding another £250 for newborns whose parents received certain benefits. An extra £250 was paid into the account on the holder's seventh birthday. Mums and dads were given a voucher to open a CTF, but if parents didn't do so, HMRC opened one on the child's behalf. Existing CTFs still take deposits, with a cap of £9,000 per year.
Accessing Your Child Trust Fund
Under the rules, a child would not usually be allowed to access their money until they turn 18. The first 18 year olds were able to withdraw cash from 2020 and use it however they wanted to. Once the account matures on the child's 18th birthday, the money can be withdrawn or transferred to an ISA for adults. The CTF then closes.
According to the Institute for Fiscal Studies, 6.3 million CTFs were opened, 70% by parents and 30% by HMRC. The think tank states £2 billion was paid in overall by government.
How to Check if You Have a Child Trust Fund
To find out if you have a CTF, you should contact the provider if you know which one has your account. If you don't know, you can ask a parent or request HMRC to track down your provider as they can confirm where the CTF was opened. You will need to give your National Insurance number and, if you are adopted, your adoption details.
Parents searching for a child's CTF will need to provide their son or daughter's full name, address and date of birth. After details are entered on an online form, HMRC will send a letter confirming which provider holds the account for you or your child.
