Sorry for the misunderstanding. I was replying to a PP who asked who sends thank you notes any more. I said it’s important to instil in kids to thank people for gifts. Encourage them to write a little note etc.
Obviously, if the child is told all the gifts are from Santa, they can’t learn to thank people. As they don’t even know the person put in the thought and spent money on them. That’s why I agree with OP that it’s better to leave tags on. So the child can know.
As this thread shows, there isn't any one British tradition. It’ll depend on the background and traditions of families. In fact, I’ve never before heard of taking presents from relatives and keeping it secret from children who they’re from. My kids never had two piles. They had a stocking and a sack left by Santa next to their bed. The stocking was from Santa. The sack was full of presents Santa had delivered, which other people had ordered from him.
I agree Xmas is now way too commercial. I don’t partake in a lot of that. I have a very small family and my father died at Xmas, which makes it hard for me. So, I take it easy and it’s always just me and my kids and my mum. No extended family, as there aren’t really any left in the UK or due to dysfunction of previous generations we don’t know or see them.
But lots of family friends used to (and still do) give my kids gifts. I guess that’s why we’ve always thanked them, as I was so grateful and touched they went out in the cold (pre online shopping) and spent their very limited money on lovely, thoughtful gifts (when they weren’t obliged to) so my kids had a big pile of gifts in their sack. They were never really expensive, but always the sort of things the kids loved and played with most. Never given to charity shop.
As I said before, IMHO a gift should be thoughtful rather than expensive. Chosen with care and love for the person. Not ticking a box or spending a fortune. Maybe even home made.
I buy lots of people Xmas gifts but I don’t spend much. You can still buy mini things, like mini bottles of cava or lovely hand cream or chocolates, books. Things people need or will use. Little figures for kids (e.g. superheros) for them to make up their own games and take out. Wrapped with care. It’s the thought that counts, not the cost. And I think it’s important to let people know their thought and effort was appreciated. It creates a circle of love.