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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My partner has recently inherited some money and wishes to

Resolved Question:

My partner has recently inherited some money and wishes to assist me with paying off my debt. If she were to transfer me the money would I/she have to pay tax on it? The amount would be approx. £10,000. We are living together but not married / no civil partnership.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...There is no tax on gifts. The recipient of the gift receives it free of any tax.Your partner would have to consider inheritance tax implications if the gift was in a lump sum of £10,000. It would be regarded as a potentially exempt transfer for IHT purposes and the seven year rule would apply. If the person giving the gift survives or 7 full years after making the gift then the gift is exempt from IHT.If your partner has not made any gifts in this tax year of the previous tax year then she may wish to consider giving you £6,000 prior to 5 Apr 2016 to cover gift under annual exemption of £3,000 for this year and £3,000 for previous year, and then gift you another £3,000 after 6 Apr 2016 to take advantage of annual gift exemption to cover 3 tax years.More information on both of these can be found 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.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes