00:00If it is money specifically given to a child by their parent or step-parent,
00:05not grandparents, uncles, aunts, parent or step-parent,
00:08and the child earns over £100 interest a year on it,
00:11so not that much, right, £100 interest a year on it,
00:15then that money is taxed at the parent's tax rate.
00:19So if the parent pays tax on the savings,
00:22and they may not because of the personal savings allowance,
00:24the parent pays tax on the savings and the money is from the parent,
00:26then kids will pay tax even on relatively small amounts,
00:31that's when a junior ISA comes into play.
00:33Right.
00:33Because if you put the money in the junior ISA and it's money from a parent,
00:36it's never taxable.
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