Lending spare cash to a partner to invest

Susi-su

My partner and I planned to sell each of our homes, and combine the proceeds to buy a property together. He sold his last year, but mine is proving more difficult to shift. He has invested the proceeds from his sale, including buying £30,000 of Premium Bonds, and we are wondering what the implications would be for investing another £30,000 in PBs in my name.


It appears from the nsandi website that you can only purchase PBs for yourself, and we understand that if he gives me the money to buy them the taxman will charge him/us Gift Tax. Would it be legal (from an IR point of view) for him to give me an interest-free loan for me to invest? And what documentation would we need to complete/lodge (somewhere)? Obviously, as soon as my house is sold we will liquidate all the investments to put towards our jointly owned property.


Sorry if this has already been covered elsewhere - I'm new to the site, so may have missed it.

Mojisola

Susi-su wrote: »

My partner and I planned to sell each of our homes, and combine the proceeds to buy a property together. He sold his last year, but mine is proving more difficult to shift. He has invested the proceeds from his sale, including buying £30,000 of Premium Bonds, and we are wondering what the implications would be for investing another £30,000 in PBs in my name.

It appears from the nsandi website that you can only purchase PBs for yourself, and we understand that if he gives me the money to buy them the taxman will charge him/us Gift Tax. Would it be legal (from an IR point of view) for him to give me an interest-free loan for me to invest? And what documentation would we need to complete/lodge (somewhere)? Obviously, as soon as my house is sold we will liquidate all the investments to put towards our jointly owned property.

What gift tax?

[Deleted User]

there is no gift tax unless the person gifting the money(over £3000 per year)dies within 7 years then IHT may apply

longtermplanner

There is no such thing as Gift Tax.

Premium Bonds are an appalling "investment". As a place to stash cash for a few months that is going to be needed for a house purchase, they are ok, but have you considered you both opening a Santander 123 account?