Child Trust Fund Maturity Guide 2026: What Happens at 18
Children born between September 2002 and January 2011 were given a Child Trust Fund by the government, and millions of these accounts are now maturing as the original account holders turn 18. This guide explains what happens automatically at maturity, how to trace a lost or forgotten account, and the best options for using or transferring the money.
Updated 1 July 2026
Key Facts
Eligible birth years:1 Sept 2002 to 2 Jan 2011
Scheme closed to new accounts:January 2011
Maturity age:18
Tax status after maturity:Remains tax-free indefinitely
What Is a Child Trust Fund?
The Child Trust Fund (CTF) was a UK government scheme that gave every child born between 1 September 2002 and 2 January 2011 a long-term, tax-free savings account. The government made an initial voucher contribution, and family and friends could add further money each year up to an annual limit. Accounts came in three main forms: cash CTFs, stakeholder CTFs (a default with capped charges), and shares-based CTFs invested in the stock market.
The scheme stopped accepting new accounts from January 2011, replaced by the Junior ISA, but every existing CTF continued to run and grow tax-free until the child reaches 18.
What Happens Automatically at 18
On the account holder's 18th birthday, the CTF matures automatically. The money is not paid out or closed — it converts into a "matured CTF account" held on broadly similar terms with the same provider, and it keeps its tax-free status. No action is required to keep the money tax-free; the account simply continues to exist under the account holder's own control instead of a parent's or guardian's.
From this point, the newly-turned-18 account holder has full legal authority over the account and can choose to leave it invested, withdraw funds, or transfer the balance elsewhere.
Finding a Lost or Forgotten CTF
Because these accounts were opened up to two decades ago, many families have lost track of the provider, especially where a parent set up the account with a bank or building society that has since merged, been renamed, or stopped offering CTFs. HMRC provides a free online CTF tracing tool that matches your details against the National Insurance number to find which provider holds your account.
To use the tool you need a Government Gateway account. The account holder can use it themselves from age 16, or a parent or guardian can trace an account for a younger child. If you know the provider changed hands over the years, checking industry news or asking the current holding company (many CTF books were bought up by a handful of large providers) can also help.
Your Options at Maturity
Leave it where it is — the matured account continues tax-free with no deadline to act.
Transfer to an adult Cash ISA — useful if the CTF provider offers a poor interest rate.
Transfer to a Stocks and Shares ISA — sensible for money not needed for several years, giving access to a wider range of investments and typically lower charges than older CTF share funds.
Withdraw as cash — available immediately, but any future growth outside a tax wrapper may become taxable.
Transfers from a matured CTF into an ISA do not use up any of the account holder's £20,000 annual ISA allowance, making this generally the most efficient way to keep the money working tax-free while improving on the rates or investment choice of an older CTF provider.
Tax Treatment
A matured CTF, and any ISA it is transferred into, remains completely free of income tax and Capital Gains Tax on interest, dividends and growth. There is no deadline forcing a decision — the tax-free status does not expire after a set number of years. The only point at which tax exposure can arise is if money is withdrawn from the wrapper entirely (for example, spent or moved to an ordinary savings account), at which point any future interest earned outside the ISA or CTF wrapper is assessed against the account holder's own Personal Savings Allowance like any other savings income.
Common Pitfalls
Assuming the account has been closed or lost. A dormant matured CTF keeps its value and tax-free status indefinitely — it is not forfeited if left untouched.
Not shopping around before transferring. Some legacy CTF stakeholder funds have higher charges than modern ISA equivalents; comparing rates before transferring can improve long-term returns.
Withdrawing cash instead of transferring to an ISA. Withdrawing loses the tax-free wrapper permanently for that money, whereas an ISA transfer preserves it.
Frequently Asked Questions
What is a Child Trust Fund?
A Child Trust Fund (CTF) is a long-term tax-free savings account that the government set up for every child born in the UK between 1 September 2002 and 2 January 2011. The government made an initial contribution, and parents, family and friends could add up to an annual limit. The scheme closed to new accounts in January 2011 and was replaced by the Junior ISA, but existing CTFs continued running until maturity.
What happens to a Child Trust Fund when the child turns 18?
The CTF matures automatically on the account holder's 18th birthday. The money does not disappear or get paid out automatically — it stays invested in a "matured CTF account" on broadly the same terms, remaining tax-free, until the account holder decides what to do with it. From age 18 the account holder has full legal control and can withdraw the money, leave it invested, or transfer it into an adult ISA.
Do I have to pay tax on money in a matured Child Trust Fund?
No. A matured CTF keeps its tax-free wrapper indefinitely — there is no time limit forcing you to withdraw or transfer it. Interest, dividends and capital growth within the matured account remain free of income tax and Capital Gains Tax for as long as the money stays in the CTF or is transferred directly into an ISA.
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How do I find a lost or forgotten Child Trust Fund?
If you do not know which provider holds your Child Trust Fund, you can use the free HMRC online tool to trace it. You will need a Government Gateway account and some personal details. If a parent or guardian opened the account on your behalf and lost track of the details, the same HMRC tracing service works for the account holder once they turn 16, or for a parent enquiring on behalf of a younger child. Providers also often write to account holders as they approach 18, but letters can go astray if the family has moved house.
Can I transfer a Child Trust Fund into an adult ISA?
Yes. Once you turn 18, you can transfer some or all of a matured CTF into an adult Cash ISA or Stocks and Shares ISA using the normal ISA transfer process, without it counting against your annual £20,000 ISA allowance for that year. This is usually worthwhile if your CTF provider offers poor rates or limited investment choice compared with mainstream ISA platforms — shopping around before transferring can make a meaningful difference over time.
What if I withdraw the money instead of transferring it to an ISA?
You are free to withdraw the full balance in cash once you turn 18, since it is your money and the tax-free wrapper is not compulsory to keep. However, once withdrawn as cash rather than transferred directly into an ISA, any future interest or growth on that money outside a tax wrapper could become taxable, depending on your Personal Savings Allowance and other income. Many account holders choose to keep at least part of the balance inside an ISA to preserve the tax-free status.
How much is a typical matured Child Trust Fund worth?
The value varies enormously depending on the type of account (cash, stakeholder or shares-based), how much was contributed over the years by family, and investment performance. The government's initial contribution was modest, so many dormant or low-contribution accounts are worth only a few hundred pounds, while others where family paid in the maximum annual amount for years, invested in shares, can be worth several thousand pounds.
Can parents access a Child Trust Fund before the child turns 18?
Generally no. Once opened, the money in a CTF belongs to the child and cannot normally be withdrawn by a parent or guardian before the child's 18th birthday, except in very limited circumstances such as terminal illness of the child. This "locked in" feature is one of the key differences from a Junior ISA, which follows similar access rules, and reflects the CTF's design as a long-term savings vehicle for the child's future.
What is the difference between a Child Trust Fund and a Junior ISA?
They are functionally very similar tax-free wrappers for children's savings, but the CTF closed to new accounts in January 2011 and was replaced by the Junior ISA. If a child already has a CTF, they cannot also open a Junior ISA — but a CTF can be transferred directly into a Junior ISA before the child turns 18, which often gives access to a wider range of providers and better rates than some legacy CTF accounts.
What should I do with a matured Child Trust Fund at 18?
Start by tracing the account if the details are not known, then compare the interest rate or investment performance and fees against current adult ISA products. If the existing provider is not competitive, transfer the balance into a new Cash ISA or Stocks and Shares ISA using the ISA transfer process, which preserves the tax-free status without using any of your annual allowance. Consider your own savings goals and risk appetite — a Stocks and Shares ISA may suit long-term goals like a house deposit years away, while a Cash ISA suits money needed sooner.
Disclaimer: This guide is for general information only and does not constitute personal financial advice. Always verify current terms directly with your CTF provider before transferring or withdrawing funds.
