If you are making financial gifts to children this Christmas, think beyond December.
By any measure, £1,500,000,000 is a lot of money. It is also the amount sitting unclaimed in just over 750,000 child trust fund (CTF) accounts as of April 2025. Some of those accounts matured more than five years ago, as the first children eligible for a CTF were born in September 2002. HMRC statistics also show that 10,000 of the unclaimed accounts had a value of at least £20,000, although the average value of all the unclaimed accounts was about £2,000.
Fortunately, the previous government anticipated that many CTFs would go unclaimed and introduced legislation allowing them to continue beyond age 18 with the same tax reliefs that applied before maturity. Nevertheless, a post-18 CTF may not be the best form of savings for its adult owner because of the charges levied and/or the underlying investment.
The story of neglected CTFs is food for thought if you are thinking of making a financial gift to minor children (or grandchildren) this Christmas. An investment for a child needs a structure
to ensure it achieves its goals. That in turn will usually mean advice is necessary – something many CTF owners (and their parents) never received.
The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.
The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.
Investing in shares should be regarded as a long-term investment and should fit with your overall attitude to risk and financial circumstances.
Past performance is not a reliable indicator of future performance
To trace a lost CTF, go to https://www.gov.uk/child-trust-funds/find-a-child-trust-fund