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, 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:

Reclaim tax deducted before 6 April 2016

Tax was usually deducted automatically from savings accounts before 6 April 2016.

To reclaim it, fill in form R40 and send it to HM Revenue and Customs (HMRC). It takes about 6 weeks to get a refund.

HMRC
Leicester and Northants (Claims)
Saxon House
1 Causeway Lane
Leicester
LE1 4AA