Thousands of young adults have been urged to check if they are sitting on an unclaimed cash pot. HM Revenue and Customs (HMRC).
Tax collection department It is said that about 758,000 young adults have yet to claim their Child Trust Fund, priced at £ 2,240 on average.
These funds are established for long-term, tax-free savings Every child was born Between 1 September 2002 and 2 January 2011. The government deposited £ 250 in each, received an additional £ 250 in low -income families or in local authority care.
Young people can control this account at 16 and withdraw money when they are 18 years old. With interest, when they were installed, they are higher than the highest value.
Angela McDonald, HMRCThe second permanent secretary and Deputy Chief Executive Officer said: “If you are between 18 and 23, you can sit on the savings payment and not even feel it. Child Trust Fund‘To find your savings account today on Gov.uk. ,
Parents or parents of a child can also pay up to £ 9,000 per year. Many still do this, but new accounts cannot be set. The Child Trust Fund was introduced by Labor in 2005 under Tony Blair and was scattered by conservatives in 2011.
They were replaced by junior individual savings accounts (ISAS), which are long-term, tax-free savings accounts for children. These accounts work equally, except that the government does not give any Wealth When they are installed.
HMRC Has released new advice General jade Adults may have Child Trust FundAs he or his parents may have lost its track or forgot that it was installed.
However, the department also advises against using third-party agents that offer to find the Child Trust Fund at a price. In extreme cases, they are known for charging £ 350 or even 25 percent of the account value for it.
Get a free partial stock for up to £ 100.
Capital at risk.
terms and Conditions apply.
Advertisement
Get a free partial stock for up to £ 100.
Capital at risk.
terms and Conditions apply.
Advertisement
Shelie Dore-Ciliums, CEO of London Foundation for Banking and Finance, stated that the group “welcomes HMRC calls for young people to claim saving its Child Trust Fund”.
He said: “It is encouraging to see the government’s efforts to reunite the people. Wealth They cannot even realize. With an estimated average of waiting for £ 2,242 in unclaimed accounts, it is an important time real money, which can help young people correctly at the beginning of their financial life. ,
Once the fund is accessed, there are many options for what to do with them. A pension and savings expert in AJ Bell, Chalain Young said: “Once you track the money, you can choose what to do with it. Your options are to transfer it to an adult ISA or take back the money.
“Till then, your money will only sit in an account in which no one else has access, possibly paying too much fee.
“You move anything in maturity to an adult ISA, which will not be counted to your annual ISA allowance, which is £ 20,000 for more -18.”