HMRC recently revealed a surprising statistic: around 758,000 young people aged 18 to 23 have a matured Child Trust Fund (CTF) that they haven’t claimed.
With the average account worth £2,242, that’s a lot of money being left on the table.
So, could you – or your child – be one of them?
What is a Child Trust Fund?
A Child Trust Fund is a tax-free savings account for children born between 1 September 2002 and 2 January 2011. The scheme closed to new accounts in 2011, but existing accounts are still active.
Key points:
- Up to £9,000 a year can still be paid into an existing CTF.
- The money in the account belongs to the child.
- They can take control from age 16, but
- They can only withdraw the money from age 18.
- Any interest earned is tax-free.
If your child is now 18 or older, their CTF may already have matured – but if they haven’t claimed it, the money is still there waiting.
How to find a lost or forgotten Child Trust Fund
Plenty of people simply don’t remember who the provider was, or aren’t even aware a CTF was opened for them. Fortunately, there are a few ways to track it down.
- Check with the provider (if you know who they are)
If you already know who the CTF provider is – for example, a particular bank, building society or investment company – the account holder can contact them directly to trace the account.
Parents or guardians may also have old paperwork or statements which show the provider’s name, and the account details. It’s worth having a dig through old files first.
- Use HMRC’s online tracing service
If the provider isn’t known, there’s a dedicated HMRC online service that can help.
HMRC can tell the account holder which provider the account was originally opened with, so they know who to contact next.
The service is widely used – more than 563,000 people used it in the 12 months to the end of August 2025 – so you’re definitely not alone if you’ve lost track.
What you’ll need to use the HMRC Child Trust Fund service
To use the online tool, the account holder will need their National Insurance number; if they don’t know this, they can find it in the HMRC app.
If the account holder was adopted, they’ll also need details of their adoption.
Where a parent or guardian is using the tool on behalf of a child, they’ll need:
- The child’s full name
- Their address
- Their date of birth
- Any previous names used by the parent, guardian or child
- The child’s National Insurance number, if known
One important point:
The form has to be completed in one go – you can’t save it and come back later, so make sure you’ve got all the information ready before you start.
Will HMRC tell you how much is in the account?
The HMRC service will only tell you who the provider is, it won’t show the account balance, or provide details of how the funds are invested.
Once you know the provider, the account holder must contact them directly to find out how much is in the account, and what options are available – for example, leaving it invested, transferring to an ISA, or withdrawing the funds
Why this matters for families – and business owners
If you’re a parent, guardian or even an employer of young people, it’s worth spreading the word.
Many 18 to 23 year olds may have thousands of pounds sitting in a CTF without realising – money that could:
- Help with rent or university costs
- Go towards driving lessons or a car
- Be invested for the long term
And because it’s a tax-free pot, it’s a really valuable starting point for building better financial habits.
Need help understanding the tax side?
While Child Trust Funds themselves are tax-free, withdrawing or reinvesting money can raise wider questions about:
- Savings and investment planning
- Using ISAs and other tax-efficient options
- Helping your children or employees make better financial decisions
If you’d like to chat through the options for your family or your business, Jon and the team at Jon Davies Accountants are here to help.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
You can email us at gr****@*********************co.uk