Mortgage paid off by partner, tax question

Hello

Can anyone advise me, if my partner was to pay off my mortgage, are there tax implications for me?

Thanks

Replies

  • PeePee Forumite
    3.8K Posts
    The big implication for you is the interest your partner may then have in the house.

    If he/ she died within seven years there may be IHT complications if their estate was worth over £325,000 including the amount to pay off your mortgage.
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Are you married to your partner?
  • sorry, is IHT inheritance tax?

    My quesion is do I have to pay any tax now? Also should I put the deeds in both our names?
  • Are you married to your partner?

    Not yet, next year.
  • PeePee Forumite
    3.8K Posts
    Well do you want your partner to own part of the house?

    (I am screaming no! no! NO! in case you can't hear me, but marrying someone gives them part of your assets longer term.)

    Sorry, yes IHT is Inheritance Tax. I can't see any income tax or Capital Gains Tax issues...
  • I thought someone might scream at me :-) But to be honest he will be paying the majority off, we are getting married next year and will be selling his property and with the proceeds buy another place where we will both be on the deeds as owners. My place can then be rented out.

    But from what you have said by marrying this will give him part of my assets and vice versa even if the deeds stay in my name?

    I was asking about the tax issues as I wasn't sure about gift tax issues, someone had mentioned it to me.

    Thanks
  • PeePee Forumite
    3.8K Posts
    Gift tax is, I suppose, Inheritance Tax. You only pay tax on gifts if they are chargeable to Inheritance Tax which is mainly only if they are in the last seven years of a person's life. (And not if they were a spouse!)

    I would leave any change of ownership until you get married, but that is very cynical of me.

    To be fair if he is paying say half the value of the house he deserves the house in joint names 50/50 or whatever the fair share would be.
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