unclaimed Archives - WRLO Accountants

Young people reminded to reclaim government savings

WRLO Accountants — Fri, 04 Oct 2024 19:34:50 +0000

Over half a million young people are yet to lay claim to Child Trust Funds worth an average of £2,212, HMRC has said. Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures. The savings are not held by the government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested. If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: ‘Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible. ‘You don’t need to pay anyone to find your […]

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HMRC urges nearly 430,000 young people to claim Child Trust Fund cash

WRLO Accountants — Mon, 09 Oct 2023 15:48:44 +0000

HMRC has urged almost 430,000 young people with an unclaimed Child Trust Fund (CTF) to claim their cash. CTFs are tax-free savings accounts that were created for every child born between 1 September 2002 and 2 January 2011. The government contributed an initial deposit of at least £250. Family and friends can contribute up to a maximum of £9,000 in any one year into an existing CTF account. CTF accounts began to mature in September 2020 when the first children turned 18. HMRC revealed that there are currently 5.3 million open CTF accounts, and that more than 500,000 matured CTF accounts have been claimed or transferred into an ISA since September 2020. Angela MacDonald, Deputy Chief Executive at HMRC, said: ‘Many 18–21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their CTF is a pot of money with their name on. ‘I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their CTF. It could make a real difference to their future plans.’ Internet link: HMRC website

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Almost a million Child Trust Funds still unclaimed

WRLO Accountants — Fri, 11 Aug 2023 08:18:12 +0000

Almost a million young people have yet to access savings contained in Child Trust Funds (CTFs), according to a report by Parliament’s Public Accounts Committee (PAC). The PAC said over £1.7 billion is waiting to be claimed by a million young adults, at an average value of £1,900 each. It says ‘failure in long-term planning’ by HMRC means 42% of eligible 18-20-year-olds have not drawn on their savings. The PAC says that given CTFs are not reaching many of the people they were designed to help, HMRC should be doing more to find and contact young people who have not claimed their savings. According to the PAC, many young adults don’t know about their savings or have lost track of them. It found that CTF providers are charging fees for passively managing accounts but are not doing enough to link these accounts to their owners. Dame Meg Hillier MP, Chair of the PAC, said: ‘The aims behind CTFs are laudable – for young people to come into a pot of money on reaching 18, with the promotion of financial literacy and good savings habits. But many young people are unaware that they have money waiting to be claimed. ‘In an ongoing […]

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