sharing tax burden

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
4 replies 603 views
shiredeonshiredeon Forumite
228 Posts
re: my previous posts on retiring to france, i am making enquiries about the tax implications in france, on the uk side am i right in thinking that i should invest in the hyp's and funds in both me and my partners names to share the tax burden (we are unmarried) or is there more to it than that. thanks,

Replies

  • Andy_LAndy_L Forumite
    11.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Because you're not married you are, potentially, vunerable to CGT if you need to transfer assets between each other to share the tax burden
  • the majority of the capital is in our house which is in my girlfriends name, i was hoping we could just split the money.
  • EdInvestorEdInvestor
    15.7K Posts
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    If you are talking about capital gains tax, there is no UK CGT on your main home.There should not be any on an HYP because you won't be selling the shares, but if you do do any selling of shares/funds, there is an annual allowance of 9k of realised gains.

    Where it tends to arise is with the sale of a BTL which has mained a giant capital gain, as they did in the 1990s/early 2000s, sadly usually not now. :(

    But there is also taper relief applying on all capital gains after holding for a few years to add to the allowance.

    Note that if you go overseas and stay away for 5 years, you pay no CGT.If returning after that, you must sell and realise the gains in the previous tax year so as to be CGT free and return with a clean slate.
    Trying to keep it simple...;)
  • shiredeonshiredeon Forumite
    228 Posts
    excellent info ed, i was thinking about income tax if i was lucky enough to earn enough to pay it, ie 25k, as most of the money would be in cash after the house sale it would be easy to create 2 porfolios instead of one, i am 52 and she is 43 so would get her pention considerably later.
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