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Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly
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No direct tax implications for either of you, (as this will be treated as a gift so not liable to tax) just the consideration of Inheritance tax on your estate (you state we are paying off- so I assume you have a partner so this applies to them also)
The implication will arise if you do not survive more than 7 years from the date of making this gift as then it will (some or all of it) have to be added back into your estate for Inheritance tax consideration
However if your estate (including this gift) is less than £325,000 then you are exempt from Inheritance tax anyway
I have added a link re gifts and Inheritance tax for your information here https://www.gov.uk/inheritance-tax/gifts
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