UK parents face tax complications if children's savings interest exceeds £100, impacting personal savings allowance.

Parents could be prioritizing children's savings over the entire household and not aware of tax implications, warns a study. UK parents may face tax complications if their children's savings interest exceeds £100, as this interest is counted towards parents' personal savings allowance. Personal savings allowance stands at £1,000 for basic tax band and £500 for higher tax band, after which savings interest is taxed at the usual rate of Income Tax.