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Ask Clare Your Own Question
Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34491
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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My partner and I are splitting up we are not married but have

Resolved Question:

My partner and I are splitting up we are not married but have been together for 14 years. He has agreed to give me funds equivalent to half the value of the house we live in for me to buy a place if my own. How is best to receive this lump sum so as not to be heavily taxed? Is it possible for him to buy the house and simply put it in my name?
Submitted: 3 years ago.
Category: Family Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is XXXXX XXXXX I will do my best to help you but I need some further information first.
Who currently owns your existing home?
What taxation are you concerned about?
Clare
Customer: replied 3 years ago.

We have lived in the house together for 5 years. It is in his name, he pays the morgage and I contribute to all the bills. I put in some capital brought over from the sale of our old house in to this house about £25,000. Despite me not being on the deeds either, he is willing to get me half of the value of the house out for me to buy my own home. He intends to raise this money by remorgaging I believe. Once this money is raised, can he simple transfer it to me or gift it without me paying tax on it?


 

Expert:  Clare replied 3 years ago.
Hi
How much will he be paying you - and how old is he?
Clare
Customer: replied 3 years ago.
He is 40 years old and half the value of the house could be anywhere from 180,000 to £250,000. I have recently left my well paid job and am currently earning below the tax allowance threshold
Expert:  Clare replied 3 years ago.
Hi
There are no tax implications form his "buying ot" your claim on the property in this way.
the only potential problem would be if he died within 7 years and his estate was large enough for Inheritance Tax to be an issue.
This slight risk can be dealt with by there being a Separation Agreement confirming that you are accepting the money in full and final settlement of any claims that you have on the property
I hope that this is of assistance - please ask if you need further details
Clare
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