HMRC says people born in certain year will be handed free £2,212

HMRC is rolling out a cash boost for people who have Child Trust Funds. HMRC is urging people to "unlock" a cash boost this Christmas, as hundreds of thousands of people may be entitled to a lump sum of around £2,212 on average.

On Twitter/X, HMRC wrote: "Unlock a boost this Christmas by cashing in your #ChildTrustFund. If you’ve turned 18 in the past few years, then you could be missing out on a cash boost. Find out more below." The alert comes for people born in 2006.

A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011. Find a Child Trust Fund as a parent or if you are over 16. The Child Trust Fund scheme closed in 2011. You can apply for a Junior ISA instead.

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You can continue to add up to £9,000 a year to an existing Child Trust Fund account. The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16. There’s no tax to pay on the Child Trust Fund income or any profit it makes.

It will not affect any benefits or tax credits you receive. "Contact your Child Trust Fund provider directly if you know who the account is with," HMRC says, adding: "If you do not know the provider, you can ask your parent or guardian. You can also ask HM Revenue and Customs (HMRC) to find a Child Trust Fund provider. They can tell you where the account was originally opened."

"You’ll be asked for your National Insurance number. You’ll also need your adoption details if they apply," the taxman says. "If you’re a parent or guardian looking for a child’s trust fund, you’ll need the child’s full name, address and date of birth and any previous names you or the child have used.

You can include the child’s National Insurance number if you have it. You’ll need to complete the form in one go - you cannot save and return to it.