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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, if a joint home owning (50/50 share) partner (not married)

Resolved Question:

Hi, if a joint home owning (50/50 share) partner (not married) pays off the others partner mortgage on the joint home (the house is held in tenancy in common but the mortgage is only in one persons name) then are there any tax implications (other than inheritance tax)?

Also, if one partner pays 100% of the funds into the joint account (say £18000 pa) and other pays in nothing are there are any income tax implications for the other?

Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

If you are making a contribution out of your income and not capital/savings then there are no tax implications.

You may operate a joint bank account with another person to meet say normal expenditure. Provided the funds going into that account are taxed income and the source of income is identified there should be no income tax implications for the other.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


Customer: replied 3 years ago.

Thanks for this


 


Just a double clarification on paying off the mortgage - you say that if I do totally pay off my partners mortgage in a single lump sum payment from funds in my current account then there aren't any tax implications (apart from inheritance) for me or them. But will we need to declare this payment in either of our self assessments? (Assume that the funds are from my current account and are from my own income).


 


Also, are family holidays, clothes and purchasing a family car considered normal expenditure?


 


Many Thanks

Expert:  taxadvisor.uk replied 3 years ago.

Rupert, thank you for your reply.

You don't declare any payments to pay off mortgage or loans on your self assessment.
Self assessment tax return covers disclosure of taxable income from different sources and payments against which tax relief is available.

Family holidays and expenditure on clothes would be considered as normal expenditure where as family car is debatable... spending £20k on car may not be deemed normal expenditure.

I hope this is helpful.

Customer: replied 3 years ago.

hi, can I ask one more cheeky question -


 


If I loan my partner £370,000 interest free over 20 years - is there any tax liability for either of us?


 


Many thanks

Expert:  taxadvisor.uk replied 3 years ago.
Rupert, thank you for your additional cheeky question.

There is no tax liability on interest free loan.

I hope this is helpful.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.