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But the personal savings allowance (PSA) has made this much less of a difficulty. However, if the kid goes over the £100 limit and the father or mother is over the personal financial savings allowance, their savings could be taxable. However even then, if the mother or father is inside their personal financial savings allowance and the child’s savings do not take them over, it’d still be tax-free. The mother and father’ private savings allowances are also taken into account. The purpose is to cease parents using their kids’ tax-free allowance for an additional allowance. (That’s the £12,570 private allowance + £5,000 starting financial savings allowance + the £1,000 private financial savings allowance.)