Child Trust Funds

Child Trust Funds (CTFs) were opened automatically for almost every child born in that window, seeded with government vouchers and often forgotten as families moved house or changed provider. Over a million accounts remain unclaimed even after maturing. Accounts mature when the holder turns 18, and the last will mature on 2 January 2029 — so right now, thousands of young adults have money sitting in accounts they may not know exist.

Acumon helps families trace lost CTFs, understand what happens at maturity and make tax-smart decisions about the proceeds — whether that is a few hundred pounds or a fund that has grown substantially over two decades.

What Happened to Child Trust Funds?

CTFs were long-term, tax-free savings accounts opened for children born between 1 September 2002 and 2 January 2011, with the government contributing starting vouchers. The scheme closed to new accounts in 2011 and was replaced by the Junior ISA, but existing CTFs carried on — and family and friends can still add up to £9,000 a year to an account that has not yet matured.

Because many accounts were opened by HMRC on a family's behalf when parents did not act on the voucher, plenty of holders have no idea their account exists, or which provider holds it.

When Does a Child Trust Fund Mature?

A CTF matures on the holder's 18th birthday. The first accounts matured in September 2020 and the last will mature on 2 January 2029. Nothing is lost if no one claims at 18: the provider moves the money into a protected matured account where it stays tax-free until the holder gives instructions. But it may sit in cash or a default investment that no longer suits the holder — so leaving it unclaimed usually means leaving returns on the table.

How to Trace a Lost or Forgotten CTF

HMRC runs a free 'Find a Child Trust Fund' service on GOV.UK. The account holder (or a parent, for an under-18) signs in with a Government Gateway ID, provides their National Insurance number and receives details of the provider holding the account. From there, the provider can confirm the balance and the options.

Be wary of commercial tracing agents that charge a percentage of the fund for doing exactly what the HMRC service does for nothing. There is no need to pay anyone to find a CTF.

What to Do With the Money

At or after maturity the holder can withdraw the cash, keep it invested or transfer it into an adult ISA — and current ISA rules allow matured CTF funds to be moved into an ISA without counting towards the annual ISA subscription limit, which preserves the tax-free status of the pot.

Everything inside the CTF wrapper — interest, dividends and gains — is tax-free. Once money is withdrawn to a normal account, future income and gains become taxable in the usual way, so for larger balances the choice of wrapper matters. For 2026/27, gains above the £3,000 annual exempt amount are taxed at 18% or 24% — exactly the kind of drag a well-chosen ISA avoids.

How Acumon Can Help

We guide families through the tracing process, explain the maturity options in plain English and advise on the tax consequences of each route. For families thinking beyond a single account, we connect the conversation to wider planning — Junior ISAs for younger children, and structures such as family investment companies where meaningful wealth is being passed down.

What You Get With Acumon

• Step-by-step help tracing an unclaimed CTF through HMRC's free service
• Clear explanation of your options at maturity: withdraw, keep invested or transfer
• Tax guidance on what happens once funds leave the tax-free CTF wrapper
• Advice for parents still contributing to an open CTF (up to £9,000 a year)
• Wider family wealth planning, from Junior ISAs to family investment companies

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.