It’s unlikely your child’s current account will be taxed. Both children and adults have a personal savings allowance which changes each tax year. That means everyone can earn up to this amount before it gets taxed. This is boosted further as children are also eligible for the £5,000 starting rate for savings and the £1,000 personal savings allowance, so they can earn £18,570 this financial year before paying tax. This takes most children’s savings out of the tax bracket. If you are giving your children money to put in their own account, be aware that if the money earns more than £100 in interest a year, the whole lot will be taxed at your tax rate. The £100 limit doesn’t apply to money: given by grandparents, relatives or friendsin a Junior ISA or Child Trust Fund If a child is liable to pay tax, any tax due on interest earned will need to be paid to the appropriate tax authority. For more information, see the GOV.UK website.