We all wish we could come into some money now and then. For young Brits in the UK – it may just be their lucky day.
This is because HM Revenue and Customs is encouraging young adults to claim a forgotten pot of money that may have their name on it. Roughly 430,000 people between the age of 18 and 21 are said to have an unclaimed child trust fund they're entitled to.
On average the pots of money come in at around £2,000, so it's well worth claiming the cash. If you've never heard of a child trust fund before, it's essentially a long-term, tax-free savings account.
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This type of account is usually set up for children born between September 2002 and January 2011. At the time several children were handed around £250 each from the state when the account was set up.
Moreover, those who came from low-income families, or who were raised in local authority care, were handed an extra £250. Now Brits will be able to take home the cash once the child has turned 18.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, told GB News: "Many 18 to 21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their child trust fund 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 child trust fund. It could make a real difference to their future plans."
Sharon Davies, chief executive of Young Enterprise, added: "We would encourage all young people to investigate if they have money which is unclaimed in a child trust fund and to use it wisely. A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds.
"The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business. The money in a child trust fund has the potential to be life-changing and the lack of knowledge about them shows the importance of financial education and financial planning from a young age."
At the moment it is thought around 5.3million child trust fund accounts remain open. It's reported just over half a million matured accounts have been claimed or transferred into the holder's individual account.
Families are able to keep up to £9,000 tax-free into a child trust fund until the account matures. When it reaches this amount, it's sensible to claim the cash.
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