Will she have a claim to my home simply through sharing the bills?

LDN2014

Hello
I'm planning to move my partner into my home which I own. I don't intend to ask her for anything except sharing the cost of the utility bills, Council Tax etc.
I am not going to ask her for rent, and certainly nothing towards the mortgage.
The bills will remain in my name and I will show her the bills as they come and she will give me half the cost which will pass into my current account to fund the direct debits. We will keep a record of all exchange of money so everything is above board and fair. Would this be classed as income and therefore would I need to declare this to HMRC?
Is there a better way of doing this fairer for both of us? I don't want a joint account if possible (nor marriage! - she's aware of that and doesn't want marriage either. We're both single and neither of us have been married if that makes any difference).
Also, would she have any claim to my home as a result of sharing the bills, if things got sour and we parted? I know 'common law' is a myth.
All advice welcome!

da_rule

First, no there is no need to declare anything to HMRC.

There is a way that she could get an interest in the house, this has been described as the 'backdoor approach' to trusts. The case is Foe v Foe [2001]. Basically the test is that if the amount your partner pays you enables you to pay the mortgage (i.e. could you afford to live there yourself) then she may gain an interest. This is quite easy to remedy by having an agreement drawn up in which she states she will not claim an interest in the property.

LDN2014

Thank you. I guess if there was no mortgage involved at all then this would not be a problem?

da_rule

LDN2014 wrote: »

Thank you. I guess if there was no mortgage involved at all then this would not be a problem?

Probably not. At least you're not married.