Giving money to unmarried partner

[LimitedMan]

Hi,

This forum has been a great help recently on question regarding an MVL, so my company is now liquidated and I have the fruits of my contracting income in my hands. I would like to give some money to my unmarried partner who is not currently employed so she can use her ISA allowance this year and next year and also buy some premium bonds. Is there any tax implication in doing this or can I just transfer as much as I want to her account and her not to have to pay any tax ?

I did read something on inheritance tax if I die within 7 years of the gift (not planning on it!) but nothing else that covered unmarried partners ?

Many thanks for any help

LimitedMan (Guess should change my name to ExLimitedMan)

[Lance]

Hi,

This forum has been a great help recently on question regarding an MVL, so my company is now liquidated and I have the fruits of my contracting income in my hands. I would like to give some money to my unmarried partner who is not currently employed so she can use her ISA allowance this year and next year and also buy some premium bonds. Is there any tax implication in doing this or can I just transfer as much as I want to her account and her not to have to pay any tax ?

I did read something on inheritance tax if I die within 7 years of the gift (not planning on it!) but nothing else that covered unmarried partners ?

Many thanks for any help

LimitedMan (Guess should change my name to ExLimitedMan)

I think it's limited to £3,000 p.a. (or £5,000 as a wedding gift). After that she'll have to pay tax on it.

[northernladuk]

If you've a woman in your life then it's all hers anyway. What you should be asking is how much spend per week should you be asking her for.

[LondonManc]

Surely speaking to an IFA would be the best option here?

[TheCyclingProgrammer]

I think it's limited to £3,000 p.a. (or £5,000 as a wedding gift). After that she'll have to pay tax on it.

There is no such thing as a gift tax in the UK. She wouldn't have any tax liability on any sized gift.

However subject to certain exemptions, gifts above a certain value between non-spouses would become a potentially exempt transfer (PET) for inheritance tax purposes, so should OP die within 7 years the gift value may be included, or partially included, within his estate's value and if it exceeds the IHT threshold (£325k IIRC, it might have gone up) then the *estate* would owe tax (but not the recipient of the gift).

[LimitedMan]

There is no such thing as a gift tax in the UK. She wouldn't have any tax liability on any sized gift.

However subject to certain exemptions, gifts above a certain value between non-spouses would become a potentially exempt transfer (PET) for inheritance tax purposes, so should OP die within 7 years the gift value may be included, or partially included, within his estate's value and if it exceeds the IHT threshold (£325k IIRC, it might have gone up) then the *estate* would owe tax (but not the recipient of the gift).

Thanks for all quick responses, from googling that is the conclusion I was starting to come to but found it strange wasn't easier to find a definitive answer, there is lots of info on married couples/civil partnerships but not the unmarried case which seems to be different rules.

[Jessica@WhiteFieldTax]

You won't find rules for unmarried partners specifically as there are none.

TCPs analysis is correct viz the gift and a PET assuming it's substantial. There are the smaller exemptions Lance mentions which are outright, i.e. PET doesn't come into play, and, often forgotten, is the exemption for "Normal expenditure out of income" which can exempt a lot of small issues.

Subject to the PET issue your partner should have no immediate tax charge.

Depending on personal circumstances, and if there are kids or houses involved this is a must, wills are essential for an unmarried couple, also consideration of legal owenershio of joint assets.

[LimitedMan]

You won't find rules for unmarried partners specifically as there are none.

TCPs analysis is correct viz the gift and a PET assuming it's substantial. There are the smaller exemptions Lance mentions which are outright, i.e. PET doesn't come into play, and, often forgotten, is the exemption for "Normal expenditure out of income" which can exempt a lot of small issues.

Subject to the PET issue your partner should have no immediate tax charge.

Depending on personal circumstances, and if there are kids or houses involved this is a must, wills are essential for an unmarried couple, also consideration of legal owenershio of joint assets.

#

Many thanks for clarifying the position - guess to be sure on no tax going to either get married or make sure survive another 7 years !!!!