Contrary to gifting property that can attract tax, giving small amounts of money to your children is a tax-free option.
As a UK citizen, you have a personal allowance of £3000 per year to give your children. You should remember that this is the total amount you can gift your children, and you have to split this among your children.
You can give smaller amounts of £250 per year to as many people as you want. But this is not over and above the £3000 limit, and anything above £3000 will be taxed.
If you were to gift money over £3000, it would be considered for inheritance tax – if you pass away within 7 years of gifting. If you live for more than 7 years, this monetary gift won’t be considered for property tax.