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ISA unmarried couple

Hi
I have an ISA account. I realized i am going to be able to save more than 5700£ per year, so i was thinking about transfering money to my partner and she will open an ISA account. We are not married. We have a joint account.
Would the transfer of money be taxed? Would she have to pay any additional taxes? She is currently working and under 20% income tax, and with the interests she would not reach the above band.
Thanks a lot for your help.
Regards

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    you can give money to anyone without any tax implication
  • dunstonh
    dunstonh Posts: 121,189 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Would the transfer of money be taxed?

    Only if you die and your estate is subject to IHT.
    Would she have to pay any additional taxes?

    The receiver of the gift doesnt pay tax. The main issue is that she becomes the owner of that money. Not you.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    You could also make her an interest-free loan. Such things are a notorious cause of break-up disputes, so it would be best to have something in writing. If you don't want to do that, be prepared to lose the money.

    What she does with her money is up to her, even if it's borrowed money. She could save it in an ISA, or blow it on a handbag.

    She'd pay no tax on the ISA.

    If you charged interest on the loan you'd be liable for tax on it, which would defeat the object. So she'll get to keep any interest she makes.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Or you could of course, use your S&S Isa allowance and save over 11K per annum in your own name.
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