HMRC is calling on everyone born within a particular nine-year period to verify whether they are entitled to claim their Government-backed account. Typically, these accounts contain £2,200, but unless the account holders recall to claim their funds, the money must remain untouched.

Posting on X just ahead of the new tax year, the department directed people to utilise its Child Trust Fund locator tool. The short-lived Child Trust Fund initiative was established for every child born between September 1, 2002 and January 2, 2011.

A Child Trust Fund is a long-term tax-free savings account where the Government deposited an initial £250 for the child. Parents were then able to save up to £9,000 in the account annually.

While HMRC reports that the average account now contains £2,200, parents who reached their maximum savings threshold each year could have accumulated over £160,000 by the time their child reached 18.

Only the account holder, the child for whom the fund was established, can withdraw the money once they turn 18, though they can assume control of the account from the age of 16. If they don’t withdraw the funds, this money continues to remain dormant until they do.

The oldest individuals to have qualified for Child Trust Funds are now 23, meaning they may have savings which have remained idle for the past five years. Meanwhile, the youngest Child Trust Fund holders are still three years away from being able to access their savings.

HMRC offers a ‘Find your Child Trust Fund’ tool on its website to help you establish whether you or your child may have one of these accounts. Claiming the funds is straightforward and can be handled independently.

If you already have the account details to hand, you can head directly to the financial institution holding the account to make a withdrawal. The money is not subject to income tax, and many individuals choose to transfer these funds into adult ISAs in order to maintain the tax-free benefit.

Should you be unable to locate the account details, however, you can request this information directly from HMRC. This option is only available to those who are the account holder and aged at least 16, or to a parent or guardian of an account holder who is under 18.

You will need to supply the National Insurance number, full name, address, date of birth and any previous names of the child for whom the account was originally opened. Once all of this information has been submitted to HMRC, you should expect to receive a letter from the department within three weeks, containing the details of the Child Trust Fund provider.

Bear in mind, however, that if the account relates to an adopted child or one for whom parental responsibility was granted by a court, you may be required to provide HMRC with additional documentation. Full details of what is needed will be outlined in a letter following your initial request to trace the account.