HMRC urges UK households to 'cash in' free £2,200 they are owed

HMRC has urged UK households to "cash in" a free £2,200 - as Child Trust Funds lie unclaimed. HMRC says those born between September 1, 2002 and January 2, 2011 may have thousands saved up in a little-known HMRC account.

The Child Trust Fund was created as a long-term tax-free savings vehicle for children born during this time. It was set up by the Labour Party government before David Cameron became Prime Minister with the Conservative Party and coalition.

Parents could add up to £9,000 a year to their child’s account and the average cash pot currently holds around £2,200. Taking to X, formerly Twitter, HMRC said: “If you were born between 1st September 2002 and 2nd January 2011, you are likely to have a Child Trust Fund worth an average of £2,200.

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“Already turned 18? It’s yours to cash in. Find out more on GOV.UK.” You can continue to add up to £9,000 a year to an existing Child Trust Fund account. The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16.

There’s no tax to pay on the Child Trust Fund income or any profit it makes. It will not affect any benefits or tax credits you receive. To find an account, you’ll be asked for your National Insurance number. You’ll also need your adoption details if they apply.

If you’re a parent or guardian looking for a child’s trust fund, you’ll need the child’s full name, address and date of birth and any previous names you or the child have used. You can include the child’s National Insurance number if you have it.

You’ll need to complete the form in one go - you cannot save and return to it, HMRC said.