Child Trust Fund Matured: How to Access the Money at 18

A Child Trust Fund (CTF) is a long-term, tax-free savings account that was available to children born between 1 September 2002 and 2 January 2011. The scheme was established by the Child Trust Funds Act 2004 and closed to new accounts on 2 January 2011, when it was replaced by Junior ISAs.

Approximately 6.3 million CTF accounts were opened during the life of the scheme. Each eligible child received an initial government contribution, and parents, family members, and friends could make additional contributions up to an annual limit. When the account holder turns 18, the CTF matures and the funds become accessible for the first time.

As of April 2025, around 758,000 matured CTF accounts remain unclaimed, holding a combined total of approximately £1.5 billion. Over 60% of these accounts had matured more than one year previously. The average value of an unclaimed CTF stands at roughly £2,242, though individual account values vary significantly.

This guide explains how CTF maturity works, what happens to the money, and how the system operates for those who have not yet accessed their funds.

A Child Trust Fund matures on the account holder's 18th birthday. At that point, the account holder — not the parent or guardian — gains full control of the funds. The money can be withdrawn or transferred to an adult ISA. There is no statutory deadline to act; if no instructions are given, the CTF provider is required to move the investments into a protected 18+ account. Depending on the provider's terms, this may be a matured CTF account or an adult ISA, under Regulations 13A (voluntary transfers) and 13B (provider action at maturity) of the Child Trust Funds Regulations 2004.

No further contributions can be made to the CTF once it matures. The account remains tax-free — no income tax or capital gains tax is payable on interest or investment returns — until the funds are withdrawn or transferred.

If the account holder does not know which provider holds their CTF, HMRC provides a free online tracing tool. It takes approximately five minutes to complete the form, and provider details are typically returned within around three weeks.

The CTF scheme was designed as a universal savings vehicle for children. The UK government made an initial contribution into each eligible child's account, and in some cases a further contribution at age seven. Family and friends could also make contributions, subject to an annual limit.

The account was managed by a parent or guardian throughout the child's early years. At age 16, the child gained the right to take over management of the account — including becoming the registered contact, managing how the money was invested, and initiating a transfer from the CTF to a Junior ISA. However, no withdrawals were permitted until the account matured at age 18.

Upon reaching 18, the account holder becomes the sole person with authority over the funds. The parent or guardian's role ends. The account holder then has two options: withdraw the money, or transfer it to an adult ISA. If neither of these steps is taken, the provider must move the funds into a protected 18+ account under the Child Trust Funds Regulations 2004. The CTF itself closes once funds are withdrawn or transferred.

Roughly 1.7 million of the 6.3 million CTF accounts — approximately 28% — were "HMRC-allocated accounts." These were opened by the government on behalf of children whose parents did not open an account within 12 months. Many of these account holders may be unaware that a CTF exists in their name, which is one reason a significant number of matured accounts remain unclaimed.

Eligibility and Government Contributions

CTF accounts were available to children born between 1 September 2002 and 2 January 2011. The government made initial contributions that varied depending on birth date and household circumstances.

For children not in low-income households or local authority care, the standard initial contribution was £250 for most of the scheme's life. However, this varied in the scheme's early years: £277 for children born between September 2002 and April 2003, £268 for those born between April 2003 and April 2004, and £256 or £250 for those born from April 2004 onwards. For children becoming eligible on or after 3 August 2010, the initial contribution was reduced to £50.

For children in low-income households or local authority care, the initial contribution was higher: £554 (born September 2002 to April 2003), £536 (born April 2003 to April 2004), £512 or £500 (born April 2004 onwards), and £100 for those becoming eligible on or after 3 August 2010.

A further government contribution of £250 (or £500 for children in low-income households or local authority care) was made to eligible children who turned seven between 1 September 2009 and 31 July 2010. This age-seven payment was abolished for children turning seven from 1 August 2010.

Annual Contribution Limit

Anyone — parents, grandparents, family, or friends — can contribute to a CTF up to an annual limit. From 6 April 2020, the annual contribution limit was aligned with the Junior ISA limit at £9,000 per child per tax year. It was previously £4,368. Unused annual allowance cannot be carried forward to a future tax year.

Age 16: Management Rights

At age 16, the account holder can become the registered contact for the CTF, manage how the money is invested, and initiate a transfer from the CTF to a Junior ISA. Withdrawals are not permitted at this stage.

Age 18: Maturity

The CTF matures when the account holder turns 18. At this point, the account holder gains full access to the funds and can withdraw the money or transfer it to an adult ISA. No further contributions can be made to the CTF after maturity.

Tax Treatment

CTF accounts are entirely tax-free. No income tax or capital gains tax is payable on interest or investment returns within the account. This tax-free status continues in the matured account until the funds are withdrawn or transferred.

Transfer to an Adult ISA

When CTF funds are transferred to an adult ISA — whether initiated by the account holder or carried out automatically by the provider under Regulation 13B — the transferred amount does not count toward the annual £20,000 adult ISA subscription limit. This applies to transfers made under both Regulation 13A (voluntary transfers) and Regulation 13B (automatic transfers by providers when no instructions are received).

"I didn't know I had a CTF."

Approximately 28% of all CTF accounts were opened by the government on behalf of children whose parents did not act within 12 months. The account holder may never have been told the account existed. HMRC's free online tracing tool can locate the provider.

"My parents managed the account — can they still access it?"

Once the account holder turns 18, the parent or guardian's role ends. Only the account holder can instruct the provider to withdraw or transfer the funds. The parent or guardian cannot access the money, even if they were the registered contact before maturity.

"The money just sits there if I do nothing?"

If the account holder gives no instructions after turning 18, the CTF provider is required to move the investments into a protected 18+ account. Depending on the provider's terms, this may be a matured CTF account or an adult ISA, under Regulation 13B of the Child Trust Funds Regulations 2004. The funds do not disappear, nor does the government reclaim them. There is no statutory deadline for the account holder to act; the money remains in the protected account indefinitely.

"Will transferring to an ISA use up my ISA allowance?"

No. CTF-to-ISA transfers carried out under Regulations 13A or 13B do not count toward the annual £20,000 adult ISA subscription limit.

"Can my parents withdraw the money on my behalf?"

Only the account holder can access the funds at maturity. The one exception relates to individuals who lack mental capacity at age 18. In that situation, a parent or carer must apply for legal authority to manage the account — through the Court of Protection in England and Wales, or through guardianship or intervention orders administered by the Office of the Public Guardian (Scotland) under the Adults with Incapacity (Scotland) Act 2000. These are separate legal frameworks with different procedures.

"Can I hold a CTF and a Junior ISA at the same time?"

No. A child cannot hold both a CTF and a Junior ISA simultaneously. However, from age 16, the account holder can transfer the full CTF balance to a Junior ISA. This transfer option has been available since 2015.

Terminal Illness

Under Regulation 18A of the Child Trust Funds Regulations 2004, children who are terminally ill may be permitted to withdraw funds before age 18. A claim must be made to HMRC with supporting medical evidence. Once the claim is accepted, withdrawals are permitted by the registered contact, subject to maintaining a minimum balance to keep the account open.

Lack of Mental Capacity at Age 18

Where the account holder lacks mental capacity upon turning 18, the standard maturity process is modified. In England and Wales, a parent or carer must apply to the Court of Protection for deputyship in order to manage the account on the individual's behalf. In Scotland, the equivalent process involves guardianship or intervention orders administered by the Office of the Public Guardian (Scotland) under the Adults with Incapacity (Scotland) Act 2000. The legal frameworks in each jurisdiction are different.

Transfer to a Junior ISA Before Maturity

Since 2015, CTF holders have been able to transfer their full CTF balance to a Junior ISA before turning 18. The transfer must be of the entire balance — partial transfers are not permitted — and the child cannot hold both a CTF and a Junior ISA at the same time.

Provider Cessation

In most cases, if a CTF provider ceases to operate, accounts must be transferred to another provider under the transfer and winding-up provisions of the Child Trust Funds Regulations 2004. The specific transfer procedures depend on the circumstances of the provider's cessation.

High-Value Unclaimed Accounts

As of April 2025, approximately 27,000 unclaimed CTF accounts have a value exceeding £10,000. These represent the higher end of the range; individual account values vary significantly depending on the level of contributions made and the investment performance of the account over its lifetime.

The CTF maturity process is, by design, straightforward: the account holder turns 18, contacts their provider, and either withdraws the money or transfers it to an ISA. In practice, however, a significant number of account holders face complications — most commonly because they do not know a CTF exists in their name, do not know which provider holds it, or are unaware that they now have access to the funds.

HMRC's online tracing tool is the first step for anyone who needs to locate their account. The form requests the individual's National Insurance number (if known) and date of birth, takes approximately five minutes to complete, and typically returns the provider's details within around three weeks. The tool is available to individuals aged 16 and over tracing their own account, or to parents and guardians of children under 18.

Once the provider has been identified and the account holder is 18 or over, they contact the provider directly. In most cases, the provider will require proof of identity — such as a passport or driving licence — and proof of address. Specific documentation requirements vary between providers.

There is no statutory deadline for the account holder to claim their funds. The money does not expire and is not reclaimed by the government. If no instructions are given, the provider transfers the funds to a protected account. The tax-free status of the account is maintained until the funds are withdrawn or transferred.

The scale of unclaimed funds is significant. With 758,000 matured accounts unclaimed as of April 2025 — holding a total of approximately £1.5 billion, of which £899 million had matured more than one year earlier — a substantial number of young adults in the UK have funds sitting in accounts they may not know about.

What is a Child Trust Fund?

A Child Trust Fund is a long-term, tax-free savings account established under the Child Trust Funds Act 2004. It was available to children born between 1 September 2002 and 2 January 2011. The government made an initial contribution, and family and friends could add further contributions up to the annual limit.

When does a CTF mature?

The CTF matures when the account holder turns 18.

What can I do with the money when the CTF matures?

At maturity, the account holder can withdraw the funds or transfer them to an adult ISA. The CTF closes once either action is completed.

What happens if I do nothing after turning 18?

The CTF provider is required to move the investments into a protected 18+ account. Depending on the provider's terms, this may be a matured CTF account or an adult ISA, under Regulation 13B of the Child Trust Funds Regulations 2004. There is no statutory deadline, and the funds remain in the protected account indefinitely.

How do I find out where my CTF is held?

HMRC provides a free online tool to trace the CTF provider. The form requests a National Insurance number (if known) and date of birth, takes about five minutes to complete, and provider details are typically returned within approximately three weeks.

Do I pay tax on CTF money?

No. CTF accounts are tax-free. No income tax or capital gains tax is payable on interest or investment returns. This tax-free status continues in the matured account until the funds are withdrawn or transferred.

Does transferring CTF money to an ISA use my annual ISA allowance?

No. CTF-to-ISA transfers under Regulations 13A or 13B do not count toward the £20,000 annual adult ISA subscription limit.

Can my parents access the money?

No. Once the account holder turns 18, only they can instruct the provider regarding the funds. The parent or guardian's role in managing the account ends at maturity.

What if the account holder lacks mental capacity at 18?

A parent or carer must apply for legal authority to manage the account. In England and Wales, this means applying to the Court of Protection for deputyship. In Scotland, the process is through guardianship or intervention orders administered by the Office of the Public Guardian (Scotland) under the Adults with Incapacity (Scotland) Act 2000.

Can money be withdrawn before age 18?

Generally, no. The one exception is for terminally ill children, who may be permitted to withdraw funds before age 18 under Regulation 18A. This requires a claim to HMRC supported by medical evidence.

What documents do I need to access my CTF?

In most cases, the provider will require proof of identity (such as a passport or driving licence) and proof of address. Specific requirements vary between providers.

How much is in a typical unclaimed CTF?

The average value of an unclaimed matured CTF as of April 2025 is approximately £2,242. However, individual values vary significantly. Around 27,000 unclaimed accounts hold more than £10,000.

• Child Trust Funds were available to children born between 1 September 2002 and 2 January 2011, with approximately 6.3 million accounts opened during the scheme's lifetime.
• The CTF matures when the account holder turns 18. At maturity, only the account holder — not the parent or guardian — can access the funds. The two options are to withdraw the money or transfer it to an adult ISA.
• CTF-to-ISA transfers do not count toward the annual £20,000 adult ISA subscription limit.
• If no instructions are given after maturity, the provider must transfer the funds into a protected account. The money does not expire and is not reclaimed by the government. There is no statutory deadline for the account holder to act.
• CTF accounts are entirely tax-free, with no income tax or capital gains tax on interest or investment returns, and this tax-free status continues in the protected account until funds are withdrawn or transferred.
• As of April 2025, approximately 758,000 matured CTF accounts remain unclaimed, holding a total of around £1.5 billion. HMRC's free online tracing tool can help account holders locate their provider.
• For account holders who lack mental capacity at age 18, separate legal processes exist in England and Wales (Court of Protection) and Scotland (Office of the Public Guardian).

This guide explains how the Child Trust Fund system works. It is not financial advice. The information is based on the Child Trust Funds Act 2004, the Child Trust Funds Regulations 2004 (as amended), GOV.UK guidance, HMRC publications, and parliamentary briefing materials. Figures for unclaimed accounts are drawn from HMRC statistics using April 2025 snapshot data, published in 2025.

Related: ISA Allowance Rules | How to Find Lost Savings Accounts.