Saving OHs money if you aren't married

genny

My OH earns considerably more than me, I'm only just a basic rate tax payer.

If we were married I understand, he could shift his money into ISAs in my name (he's used his allowances), and other savings to get a better rate.

As we aren't married, but have been together for years, can we still do this, could he for instance "loan" me £3600 to put in a cash ISA in my name? Or a few thousands to put into another tax free item such as an NS and I saving certificate or premium bonds, or will that upset the tax man?

Thanks, Genny.

Lokolo

He cannot himself technicallly put money into your ISA. However, he can gift you the money and you can put it in your name in an ISA. But, it is then your money, you don't have to give it back. Thats the risk. You could run off with the money.

Same with anything else, he can give you the money (obviously you can then choose to give it back if he asks for it!) and you can put it anywhere you like and only pay 20% tax on interest.

So basically you can do as you said, but there is no legal obligation to give it back. Unless you want to class it as a loan, then the taxman might get involved (any interest earnt would then be subject to tax blah blah blah)

genny

And it's ok to "gift" various amounts, without issue between us as a non-married couple?

Lokolo

Yes as long as the person who gave money doesn't die within 7 years, otherwise it might be subject to inheritence tax.

genny

Thanks Lokolo, should be fine, we are quite young!

kennyboy66_2

genny wrote: »

And it's ok to "gift" various amounts, without issue between us as a non-married couple?

Yes - the only effect it could have would be on inheritance tax if he died within 7 years.

If you have got to the stage in your relationship where you are happy to move assets between each other to save tax, then perhaps its time to get married!

Lokolo

kennyboy66 wrote: »

Yes - the only effect it could have would be on inheritance tax if he died within 7 years.

If you have got to the stage in your relationship where you are happy to move assets between each other to save tax, then perhaps its time to get married!

LOL and have kids. :p:p

Oblivion

There is another little twist to this situation that you should be aware of.

Remember that there is no such thing in British law as a 'common law wife' or 'common law husband' ... it is an urban myth.

So, if partner 1 of an unmarried couple dies after receiving a gift of money from partner 2, unless partner 1 has made a will leaving everything to partner 2, partner 2 has no immediate right in law to get that money back, or indeed to receive anything owned by partner 1 (subject to legal challenge that partner 2 contributed to the purchase of an asset ... a potentially long and rocky road in the courts).

Lesson ... always make a will ... or get married, in which case each partners' assets automatically become the property of the other unless a will specifies otherwise.

Dave.

Stavros_3

Get married, its a sin to live in sin