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Posted Tue, 13 Feb 2024 09:07:41 GMT by
My son (aged 14) received certain amount of money from his grandmother. He put the money in the bank account. What happen if the interest earned in a tax year (let's say 2023/24) reached more than GBP 5,000. Does my son need to file a Self Assesment, and does he need to pay tax on it?
Posted Fri, 16 Feb 2024 10:42:13 GMT by HMRC Admin 25
Hi Frankie Chow,
A Self Assessment return would only be required to declare savings income of £10,000 or over.
While the £5000 is classed as taxable income, your son (depending on his other income) may be entitled to the tax-free starting rate for savings of £5000, and the Personal Savings allowance of £1000, in addition to his tax free allowance of £12570.
You can find more information here:
Tax on savings interest
Thank you. 

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