HMRC is sounding the alarm for a staggering number of young Britons who may be oblivious to thousands of pounds awaiting them in forgotten Child Trust Fund accounts. Startling new figures from the tax authority reveal that over 670,000 individuals aged between 18 to 22 have yet to claim their funds, with the average account sitting at a tidy £2,212.

Launched in 2005, the Labour-initiated Child Trust Funds were made available to kids born from 1 September 2002 to 2 January 2011, granting £250 or a boosted £500 for lower-income households to kick-start their savings. Parents had the liberty to add as much as £9,000 yearly, with youngsters entitled to tap into the stash as they reach 18.

However, numerous accounts have slipped into obscurity, some forcibly opened by HMRC when parents didn't act within a year post-voucher receipt.

While no new Child Trust Fund accounts can be birthed post-2011, topping up existing ones remains on the table.

Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, is championing the charge to bridge young citizens with their unclaimed money, asserting: "Thousands of Child Trust Fund accounts are sitting unclaimed we want to reunite young people with their money and we're making the process as simple as possible. You don't need to pay anyone to find your Child Trust Fund for you, locate yours today by searching 'find your Child Trust Fund' on GOV.UK.", reports the Mirror.

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If you're aware of your Child Trust Fund provider's name, you can get in touch with them directly for more information about your account. However, if you've lost track of your account, HMRC can assist you in locating it by filling out a form on GOV.UK.

This service is available to parents or guardians of children under 18, as well as individuals aged 16 or over who are searching for their own accounts.

To complete the online form, you'll need your National Insurance number and a Government Gateway account, which is free to create. Once you've provided the correct information, HMRC should inform you of your Child Trust Fund provider's name within three weeks.

Alternatively, you can request details by post by writing to: Charities, Savings and International 1, HMRC, BX9 1AU. Try to include as much information as possible, such as the full name, date of birth, address of the account holder, and their National Insurance number.

How to Check if You Have a Child Trust Fund

HMRC has made it relatively easy for young adults to locate their Child Trust Fund accounts, with the process involving a few simple steps:

1. Visit the GOV.UK website. You can search for "find your Child Trust Fund" on the website.
2. Provide your National Insurance number and date of birth. This information will help HMRC identify your account.
3. Submit your request. HMRC will then process your request and inform you of your Child Trust Fund provider within three weeks.

What to Do With Your Child Trust Fund

Once you've tracked down your Child Trust Fund, you'll have a few options on how to manage the funds:

1. Withdraw the money. You can withdraw the full amount of your Child Trust Fund. This is a good option if you need the money for immediate expenses.
2. Transfer it to an adult ISA. This allows you to continue to grow your savings tax-free. However, any amount transferred will not count towards your annual ISA allowance of £20,000.
3. Leave it in the account. Your Child Trust Fund will continue to grow, but it may incur high charges. It's worth reviewing the account terms and conditions to ensure it's still suitable for you.

Warning: Beware of Third-Party Agents

HMRC advises against using third-party agents to locate your Child Trust Fund. These agents may charge significant fees, which can eat into your savings. Some agents even charge up to £350 or 25% of the account's value.

It's important to remember that HMRC provides a free and easy-to-use service to locate your Child Trust Fund. There's no need to pay anyone to find your money.

Missed Opportunity? The Rise of Junior ISAs

The Child Trust Fund scheme closed in January 2011, replaced by the Junior ISA. Junior ISAs are a similar tax-free savings account, allowing parents and guardians to invest up to £9,000 per year for their children. The money remains locked away until the child reaches 18, and the money can be withdrawn or transferred to an adult ISA.

Conclusion: Don't Let Your Child Trust Fund Slip Away

If you were born between September 1, 2002, and January 2, 2011, it's essential to check if you have an unclaimed Child Trust Fund. With an average value of £2,212, this forgotten money could make a significant difference to your finances. Don't let this opportunity slip away! Take action today and claim your share of this valuable inheritance.