Teenagers gain access to child trust funds for first time
Hundreds of thousands of teenagers who were born between 1 September 2002 and 2 January 2011 are set to gain access to child trust funds (CTF) for the first time.
According to HMRC, around 6.3 million child trust fund accounts have been set up since the scheme started in 2002.
Around 4.5m accounts were set up by parents or guardians, with a further 1.8 million opened by HMRC where parents or guardians were not able to do so.
From today (1 September 2020), an estimated 55,000 accounts will mature each month and HMRC has created a “simple online tool” to help young people to find out where their account is held.
John Glen, economic secretary to the Treasury, said:
“We want to make sure all young people can access the money which has been set aside for them, to invest in their future and continue a savings habit, as they turn 18.”
HMRC and the Share Foundation said if a parent or guardian is unsure about where their child’s CTF account is held, they can also use the tool to find out.
The accounts are not held by HMRC, but by a number of financial services firms.
HMRC said anyone can pay into the account, up to an annual limit of £9,000, and added that there is no tax to pay on the CTF savings interest or profit.
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