Passing income to children

Where income in excess of £100 per tax year is passed by a parent to a minor child, that income is treated as remaining taxable on the parent.

Where income in excess of £100 per tax year is passed by a parent to a minor child, that income is treated as remaining taxable on the parent. However, income generated via a gift from grandparents, uncles etc is not caught in this way, leaving the income in the child’s hands where there might be little or no tax to pay.