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Posted Thu, 07 Sep 2023 10:56:21 GMT by SM1234567890
We have two daughters and make a monthly allowance payment to each daughter from our incomes. The money goes into their bank accounts and is co-mingled with ad-hoc gifts received from family - for example at birthdays, Xmas etc. The monthly contributions are £100 and £50 per month respectively from my partner and I. In 2022/23 our daughters earned £57 and £174 of interest respectively on the total balances in their account, which as per the above have arisen from our regular contributions and gifts from other family members. My understanding is that the £57 does not need reporting via self-assessment as it falls under the £100 threshold as per Is this correct? In respect of the £174 does this need reporting via self-assessment? I have seen certain articles suggest that the £100 threshold applies per parent, per child so on that basis would the £174 be non-reportable as it is less than £200?
Posted Fri, 15 Sep 2023 12:23:36 GMT by HMRC Admin 19

It would only need to be reported by the parent if it is above their Personal Savings Allowance. You can see guidance here:

Interest on savings for children

Thank you.

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