How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
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)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

Facts: We are a happy unmarried couple cohabitating

Resolved Question:

Facts:
We are a happy unmarried couple cohabitating for past 5 years.
I bought a property putting down sole deposit and have sole-ownership with mortgage in my name (and I paid the mortgage every month).
We have both lived in the property as primary residence.
We are selling the property now to move somewhere else and I want 25% of the proceeds from the sale to go to my partner (as its fair since she contributed towards house bills)
Question:
Are there tax implications for her receiving this money (either directly from the conveyancers during the sale or from me as a gift after the sale of the house)?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your question.First of all, the recipient of a gift receives it free of tax under UK tax. There are tax implications for inheritance tax purposes. Your gift to your partner would be teated as a potentially exempt transfer for IHT purposes and the seven year rule would apply to this gift. If you survive 7 full years after making the gift then the gift is out of scope of IHT as far as your wealth/estate is concerned.More information on this can be found herehttp://www.which.co.uk/money/tax/guides/inheritance-tax-explained/inheritance-tax-planning-and-tax-free-gifts/ and herehttps://www.gov.uk/inheritance-tax/gifts 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.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes