Money given to children, when those children are adults

CricketLady

Hello, please can someone help me understand this?  I know that children can earn only £100 interest tax free on money given to them by a parent, but what about if that child is an adult, does that rule still apply, or do they become like the rest of us, with the £1000/£500 savings allowance depending on whether basic/higher tax payer?

Every time I look for this information it simply talks about "children" - but although they are my children, they are not, in actual fact, children...!

Hope this makes sense, thanks so much, CL

Keep_pedalling

No that rule does not apply to gifts to adult children who will be fully responsible for taxation on their savings / investments.

sheramber

SAIM2430 - Interest: taxation of interest: children's accounts

Accounts held by unmarried minor children

Interest arising on an account held by an unmarried person under 18 is treated as income of his or her parent if

• the money in the account was a gift from the parent, and
• the interest exceeds £100.