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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I lost my job in Sept 2012 and have not worked since.

Resolved Question:

Hello. I lost my job in Sept 2012 and have not worked since. I live with my partner and he pays all bills. Additionally, he transfers money into my account monthly for me to use as necessary. Is this taxable?
Submitted: 12 months ago.
Category: Tax
Expert:  TonyTax replied 12 months ago.
Hi. The money your partner gives to you each month is not taxable regardless of the use to which it is put. Technically, the payments could be viewed as gifts for Inheritance Tax purposes but I doubt that will happen. Many couples switch money between them all the time. It would be impossible to tax all those transactions. I hope this clarifies matters for you but let me know if you have any further questions.
Customer: replied 12 months ago.
Thank you for the reply. In which case am i correct in thinking the same applies to any cash gifts I transfer from my account to my sons accounts?
Expert:  TonyTax replied 12 months ago.
There will be no income tax charge on cash gifts to your sons. Look here for information on Inheritance Tax exempt gifts.
Customer: replied 12 months ago.
Thank you for the reply. I checked the link you sent me and can see there is an annual limit on Inheritance Tax exempt gifts. The money my partner gives me in total per year, and the amount I give to my sons in total per year, exceeds this limit to a substantial degree. So does your original answer to my question still apply?
Expert:  TonyTax replied 12 months ago.
You will never have to pay income tax on the cash sums given to you by your partner and the same applies to your sons as far as the sums you give to them are concerned. When a gift is made which is not a gift out of normal income, it is a potentially exempt transfer. This means that it will fall out of the donor's estate for Inheritance Tax purposes seven years after it is made if the donor lives that long and will escape an Inheriatnce Tax charge which is normally paid out of the deceased estate in any event. Look here for information on IHT.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15847
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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