Interest on savings for children

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, for example, 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 does not apply to money:

• given by grandparents, relatives or friends
• in a Junior ISA or Child Trust Fund