Gifting to girlfriend for ISA: confirmation requested

ozzage

Wouldn't that (particularly OUTSIDE a marriage), have some tax implications if found out?

A gift should surely be a gift?

grey_gym_sock

... and a loan should be a loan? private loan agreements are allowed. well, in general.

any interest on a private loan would be taxable. but on an interest-free loan ...

ozzage

Thanks, I didn't realise that. Interesting to know, just in case. There are no restrictions, I take it, on what is done with the money or the relationship between loaner/ee?

I don't think I would go through the hassle of treating this as a loan in this case, but it might be handy for the future.

atush

ozzage wrote: »

Thanks to all those with useful advice :P

It's nice that some old-fashioned people on here still think that marriage provides a stronger sign of commitment, even if the stats don't do much to support your argument All my money is left to my partner in my will anyway so I'm certainly not considering this money to be a "loan" in any way! It's just a more tax-efficient way of ensuring our future financial success

Unfortunately the government discriminates against people who don't think that marriage is a necessary part of the life of a couple, so there are certain legal/financial advantages that we are missing out on by remaining unmarried

Thanks again all I will go ahead with this with a clear conscience.

I am not being old fashioned so much as pointing out the benefits.

If you are going to be long term, you are always better off being legally married for all sorts of reasons, inc tax, inheritance tax, exchanging assets etc. It makes fiscal sense, and makes no sense to not do it really.

A will is a good start, but not enough as only a spouse can inherit pensions w/o paying tax. or get spousal benefits on FS pensions or annuities, the list of legal and financial things that are spouse only is long.

ozzage

We are already long term

Anyway, yes I understand all that. I find it a shame that the government feels obliged to meddle in peoples' private lives in this way, and effectively force committed couples to marry (when they otherwise might not due to various beliefs) to get full legal rights!

Equality for unmarried couples!!

innovate

Hey, if you are long-term committed, it's just a signature on a piece of paper! You don't even have to invite your rellies and you don't have to have a party. Would be a shame to not take the opportunity to have one, though . And a fabulous honeymoon somewhere exotic. Go on, you know you want to!

atush

I agree, it is just a signature. And no one even has to know (ie your friends) apart from HMRC and your pension/bank etc. Data protection.

TBH, I have heard this argument a hundred times. From men of 'principle'. who then eventually pop the Q and the GF says 'hell yes'. As many hide behind these principles.

The laws were not made recently, inheritance law and common law marriage law are based on previous centuries.

I for one, an not willing to see the laws change. For one main reason.

It is women and children who mostly suffer from being in the non married state. AS eventually they get left. Or the Oh dies w/o a will, filling out beneficiary forms etc. Even in your case with a will, if you eventually have assets over the IHT limit, your partner will pay tax on it if not married.

Intellectually, I completely understand your position. but your resistance to the whole idea only will harm your partner in the end. The law is the law.

getmore4less

Since this will be surplus income if you set it up as regular payments there will be no IHT implication.

You could also gift the £3k on top.

If you go down the loan route make sure it has repayement terms

grey_gym_sock

innovate wrote: »

Hey, if you are long-term committed, it's just a signature on a piece of paper! You don't even have to invite your rellies and you don't have to have a party. Would be a shame to not take the opportunity to have one, though . And a fabulous honeymoon somewhere exotic. Go on, you know you want to!

slippery slope argument ... 1 moment it's "just" a signature on a piece of paper (what else could you use that as an argument for? ), next moment you want him to do all that other stuff ...

CKhalvashi

jamesd wrote: »

If you really must do this, do it with a loan agreement and obligation to repay in say five years or if you die sooner, 0% interest on the loan. That way there is clear documentary evidence that while the money is hers, she owes you the money.

This 'loan' can always be written off if necessary.

I've loaned OH money before now (about £200k), and whilst she still owes it, she's under no obligation to pay it back yet.

CK