Tax liability on parent's gifts to kids

[for the sake of simplicity don't mention IHT, I plan to live for the next 7 years] According to https://www.gov.uk/savings-for-children if a child makes more than £100 then *all* of that is suddenly now taxed at the income tax rate of the parent that gifted the money to their child. Firstly, can I confirm this is per-child and per-parent? I assume so as the wording is in the singular, but I want to double check here. In other words, my wife donates ~£2000 and I donate ~£2000 to a child with a 5% savings account and also the same amounts again to our other child. If they happen to make £201 interest as rates have increased, before the end of the tax year, we both pay our income tax rates on the whole amount? So we aim to keep them from earning that, or we lose 100s of quid. Secondly, is this to be calculated against only on money gifted within a tax year, or on all money that was ever donated over the years, like weekly pocket money? With rates high this is quite trivial, even at just £10 p/w pocket money for a few years. Thirdly, a parent can also donate a further £9,000 per year, per child into a JISA with no tax concerns. But can you confirm we can also donate £20,000 to a 16/17 year old into a normal ISA as well and the interest earnt there is also tax free for the parent? I'm 95% sure the answer is yes, but that webpage doesn't mention normal ISAs only JISAs. Finally, can I confirm once a child reaches 18 all of these rules go away and their own limits apply (£5,000 tax free interest earning for lowest earners, even if the money earning that interest was donated to them.

Hi Damion  Yates,
We are unable to give financial advice.
There are no Income Tax implications on the giving or receiving of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest 
Non cash gifts are a different matter, as the person giving the gift may be subject to Capital Gains Tax and the recipient if they dispose of the non cash gift.
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 

I'm not asking for any financial advice, I'm asking for clarification of the tax rules because the wording isn't clear. Assume I know my own savings tax liabilities, but there is a special exemption to what tax I pay when I gift that money to my kids. If a parent earns enough to need to pay 45% tax on any interest earnt, then gifts enough to their child enough money that the child makes £90 interest in a tax year, then according to https://www.gov.uk/savings-for-children this is fine. However if the child earns £101 then the parent that did the gifting needs to pay 45% tax on £101. My 1st question was: can I confirm this is per-child and per-parent? My 2nd question was: this to be calculated against only on money gifted within a tax year, or on all money that was ever donated over the years? My 3rd question was: The savings-for-children site says JISAs are okay. But doesn't mention ISAs. Are those also safe? My 4th question was: Do these rules only apply for children under 18 ?

Hi,

1. It is per child but guidance refers to 'a' parent which sugests just 1.  
2. It is on each tax year.
3. An ISA is not applicable if the child is under 16 (cash) or 18 (stocks).  
4. Yes. once over 18 classed as an adult.

Thank you.

Thank you for your responses. For 1) I think we're in agreement that this is per child. The guidance can only be directed at 'a' parent because the tax liability for said parent who gifted the money is the one impacted by tax issues for a kid making more than £100 in gains from money *they* (individually) donated in that tax year (thanks for your confirmation on point 2) for the tax year boundaries. This will need added complication on keeping records, but it's worth it). 4) makes perfect sense. 3) This is confusing wording. When you say "is not applicable" do you mean is not applicable for any tax concerns on donated money? Also what is meant by 16 (cash) and 18 (stocks) ? JISAs can be either, and ISAs can be stocks, lifetime, cash or innovative finance. If a child is under 16 they can have an JISA which can be cash *or* stocks and this is covered in the webpage as not having tax liability if the funds that went into it came from a parent. If a child is 16 or 17 they can still have a cash or stocks JISA (or both), up to £9,000 between them submitted into them each tax year. However they can *also* open one instance various ISA types in addition to that, with a £20,000 submission per year in aggregate. I'm 99% sure that the webpage is simply remiss in adding (or ISA) when it says JISAs are exempt from tax. This needs escalating and fixing by HMRC. However in an abundance of caution for that 1% uncertainty I'm double checking the wording and understanding on this forum. I'm concerned when you say "not applicable" that you might be indicating that if a parent gifts money to a 16 or 17yo who then opens a cash or stocks ISA (assume they already filled up their JISA with 9k), then the parent has to somehow calculate the tax on the gains that the child is getting.