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.
Leicester and Northants (Claims)
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