If You Were Born Within These Years, You May Qualify for £2000 from HMRC
As the cost of living crisis persists across the nation, millions will face ongoing difficulties in covering essential expenses as the colder months draw near.
Many of us will, of course, continue to seek assistance from the Government in the form of benefits, including the forthcoming second cost-of-living payment.
However, for individuals within a specific age bracket, there’s a glimmer of positive news on the horizon.
This is due to the fact that hundreds of thousands of teenagers born within particular date ranges may have an unclaimed Government-backed savings pot – one that could potentially amount to around £2,000.
This opportunity arises from what is referred to as Child Trust Fund vouchers – but who qualifies to receive them?
Here’s what you need to be aware of…
What are Child Trust Fund vouchers?
Child Trust Fund vouchers were a component of a savings initiative extended by the Government to new parents from 2002 to 2011.
These tax-free, long-term accounts were initiated with an initial £250 contribution from the Government at the child’s birth, followed by an additional £250 upon turning seven.
Families with lower incomes received more substantial payments of £500.
Furthermore, parents had the option to augment the account’s balance up to a maximum of £9,000.
As a result, depending on investment decisions, the funds in the account could have experienced significant growth. HMRC approximates that the average account may now be valued at around £2,000.
While more than five million of these accounts have been opened, it has also been noted that a significant portion of them have been left dormant. Financial firm Hargreaves Lansdown, for instance, estimates that as many as one in six young people may be unaware of the account’s existence.
Who is eligible for a Child Trust Fund account?
If your birth falls between September 1, 2002, and January 2, 2011, you were entitled to a Child Trust Fund account.
Upon reaching the age of 16, you gain the ability to manage the account independently, but withdrawals can only be made once you reach 18.
This account is exempt from taxation and will not impact any benefits or tax credits you may be receiving.
If you suspect you have a Child Trust Fund account but lack specific details, you can reach out directly to the account provider. If you’re unsure of the provider, you can either inquire with your parents or contact HMRC for information regarding the account’s opening.
You can enlist HMRC’s assistance in locating a Child Trust Fund if you fall under the following categories:
- A parent or guardian of a child below 18.
- 16 years or older and seeking information about your own trust fund.
You can accomplish this either online or by requesting details via post. For further information, please visit the Child Trust Fund section on the Government’s official website.
