Transferring money to partner - £40k - Tax?!

[FrankAbagnale]

Hello All,

I am hoping to transfer £40k to my partner so she can put some money in to an ISA. £20k this FY and £20k in April.

We are not married, and don't have any plans to get married.

Is there any way I can give her £40k without tax being due on the money?

We have been together for several years, lived together for several years, have a joint credit card. Not a joint bank account... yet.

Any advice welcome!

[Seventyseven7]

Just do it, no one will notice, unless you’re extremely, extremely unlucky.

[FrankAbagnale]

Seventyseven7 said:

Just do it, no one will notice, unless you’re extremely, extremely unlucky.

My kind of advice.

[TwigtheWonderkid]

Does it matter if they do notice? I think you can give as much as you like to whoever you like, tax free. Millions if you wish. Only becomes an issue if you die within 7 years and IHT limits on your estate are exceeded.

[FrankAbagnale]

TwigtheWonderkid said:

Does it matter if they do notice? I think you can give as much as you like to whoever you like, tax free. Millions if you wish. Only becomes an issue if you die within 7 years and IHT limits on your estate are exceeded.

I think it does matter, although I am no subject expert.

I thought there was a limit of around £3k or so, over which tax is due.

[number2]

FrankAbagnale said:

TwigtheWonderkid said:

Does it matter if they do notice? I think you can give as much as you like to whoever you like, tax free. Millions if you wish. Only becomes an issue if you die within 7 years and IHT limits on your estate are exceeded.

I think it does matter, although I am no subject expert.

I thought there was a limit of around £3k or so, over which tax is due.

https://www.money.co.uk/guides/how-do-i-gift-money-without-being-taxed#:~:text=You%20can%20gift%20money%20to,money%20without%20paying%20Inheritance%20Tax.

Husband, wife or civil partner.

What if you have a partner, but not in the above categories, and transfer >3k between eachother to pay for building works or other bills? What if you pay your partner £xk per month allowance?

[FrankAbagnale]

number2 said:

FrankAbagnale said:

TwigtheWonderkid said:

Does it matter if they do notice? I think you can give as much as you like to whoever you like, tax free. Millions if you wish. Only becomes an issue if you die within 7 years and IHT limits on your estate are exceeded.

I think it does matter, although I am no subject expert.

I thought there was a limit of around £3k or so, over which tax is due.

https://www.money.co.uk/guides/how-do-i-gift-money-without-being-taxed#:~:text=You%20can%20gift%20money%20to,money%20without%20paying%20Inheritance%20Tax.

Husband, wife or civil partner.

What if you have a partner, but not in the above categories, and transfer >3k between eachother to pay for building works or other bills? What if you pay your partner £xk per month allowance?

I don't mind inheritance tax, i'm hopefully half a century away from kicking the can!

I wont tell the other half this would be easier if we were married. Would be cheaper to pay the tax man.

[bristolbaron]

FrankAbagnale said:

Seventyseven7 said:

Just do it, no one will notice, unless you’re extremely, extremely unlucky.

My kind of advice.

Username checks out.

[Caddyshack]

TwigtheWonderkid said:

Does it matter if they do notice? I think you can give as much as you like to whoever you like, tax free. Millions if you wish. Only becomes an issue if you die within 7 years and IHT limits on your estate are exceeded.

Exactly this. There is zero tax to pay.

[Kirkmoly]

FrankAbagnale said:

I think it does matter, although I am no subject expert.

I thought there was a limit of around £3k or so, over which tax is due.

No. England has no gift tax whatsoever. Gifts can be construed as a distribution of your estate, hence the 7 year rule, but we do not have a gift tax.

[stephenjk]

This guardian article explains income tax is not payable on a cash gift from an individual as it is taxed at source.

https://www.google.com/amp/s/amp.theguardian.com/m...

[FrankAbagnale]

Thanks all, will proceed as hoped!

[Zaichik]

Seventyseven7 said:

Just do it, no one will notice, unless you’re extremely, extremely unlucky.

Or if they have access to google.

[Eric Mc]

You can give away as much as you like when you like.
But try not to die within 7 years.

[Sheepshanks]

FrankAbagnale said:

Hello All,

I am hoping to transfer £40k to my partner so she can put some money in to an ISA. £20k this FY and £20k in April.

We are not married, and don't have any plans to get married.

Is there any way I can give her £40k without tax being due on the money?

We have been together for several years, lived together for several years, have a joint credit card. Not a joint bank account... yet.

Any advice welcome!

She doesn’t work for you, does she?


Your question comes up quite regularly on here - I’m intrigued to know where do people get the idea from that gifts are taxable?

[FrankAbagnale]

Sheepshanks said:

FrankAbagnale said:

Hello All,

I am hoping to transfer £40k to my partner so she can put some money in to an ISA. £20k this FY and £20k in April.

We are not married, and don't have any plans to get married.

Is there any way I can give her £40k without tax being due on the money?

We have been together for several years, lived together for several years, have a joint credit card. Not a joint bank account... yet.

Any advice welcome!

She doesn’t work for you, does she?


Your question comes up quite regularly on here - I’m intrigued to know where do people get the idea from that gifts are taxable?

Nope, doesn't work for me.

Question came up for me as I was confused by the "annual exemption" of £3000 and a lot of references to tax on gifts.

https://www.money.co.uk/guides/how-do-i-gift-money...

I assumed before googling it was fine to just hand over some money without tax, but left more confused than I started.

[Abdul Abulbul Amir]

Sheepshanks said:

FrankAbagnale said:

Hello All,

I am hoping to transfer £40k to my partner so she can put some money in to an ISA. £20k this FY and £20k in April.

We are not married, and don't have any plans to get married.

Is there any way I can give her £40k without tax being due on the money?

We have been together for several years, lived together for several years, have a joint credit card. Not a joint bank account... yet.

Any advice welcome!

She doesn’t work for you, does she?


Your question comes up quite regularly on here - I’m intrigued to know where do people get the idea from that gifts are taxable?

Because, as already stated, they will form part of the estate if the OP dies within 7 years of the gift, and if so, may be subject to IHT.

[Caddyshack]

I would imagine most people "forget" about a gift of £40k when the probate forms are completed as it is a tick box "have any gifts been made within the last 7 yrs?" - would the executor know about the gift?


Yes, there are potential penalties for the Executor if the estate was investigated and the gift was found.

[zbc]

Sheepshanks said:

She doesn’t work for you, does she?


Your question comes up quite regularly on here - I’m intrigued to know where do people get the idea from that gifts are taxable?

I live in France where gifts are nearly always taxable, even amongst close family. There are some specific exceptions. I think France isn't alone in this respect so I guess people hear of other people paying tax on gifts elsewhere and wonder if it's the case in the UK, which as others have said it isn't

[Caddyshack]

zbc said:

Sheepshanks said:

She doesn’t work for you, does she?


Your question comes up quite regularly on here - I’m intrigued to know where do people get the idea from that gifts are taxable?

I live in France where gifts are nearly always taxable, even amongst close family. There are some specific exceptions. I think France isn't alone in this respect so I guess people hear of other people paying tax on gifts elsewhere and wonder if it's the case in the UK, which as others have said it isn't

France tax pretty much everything. I believe 40 to 60% of the working population are employed in some govt. paid role…I guess that all has to be paid for somehow.