There’s usually no tax to pay on children’s accounts.
Tell HMRC if, in the tax year, the child gets more than £100 in interest from money given by a parent. The parent will have to pay tax on all the interest if it’s above their own Personal Savings Allowance.
You must also tell HMRC if a child has an income over their Personal Allowance, eg from a trust. The child will have to pay the tax on this.
The tax year runs from 6 April to 5 April each year.
The £100 limit doesn’t apply to money:
- given by grandparents, relatives or friends
- in a Junior ISA or Child Trust Fund
