TFC31000 - Childcare accounts: closure of childcare accounts
Childcare Payments Act 2014, section 25 and Regulation 19 of childcare payment regulations
A childcare account must be closed if 2 years have elapsed from the last entitlement period for which there is a valid declaration of eligibility or 1 year has elapsed from the entitlement period in which the child ceased to be a qualifying child. Any remaining funds are split so that the top-up element is returned to HMRC, and the remainder is returned to the account holder.