Half a million CTF accounts opened by taxman

HM Revenue & Customs has been
forced to set up savings accounts on behalf of 500,000 children after their
parents failed to invest the £250 given to them by the government-sponsored
child trust fund (CTF).

According to the latest figures, roughly one in five parents have left this
decision to HMRC with 500,000 of the 2.64 million accounts have been randomly
placed with one of 14 investment companies.

Under the CTF, every UK child born on or after 1 September 2002 has been
given a CTF account by the government.

Parents who don’t choose a home for their child’s £250 voucher within the
first 12 months of a baby’s birth have the decision made for them by HMRC.

Further reading:

HMRC forced to open 350,000 child trust accounts

Revenue reprimanded over advert

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