Sale Funds Transfer

thomas1988

Hi there,

I purchased an apartment 3 years ago which I paid the deposit for. It is now sold stc. I am unmarried and we agreed that after the deposit has been taken back we would split the equity made during the3 years. This is 14k each. All these funds will go into my account upon competition but I would like to transfer the 14k to my partner. Is this liable to be taxed if I send it to him?

System

Is it your only property?

thomas1988

Yes it is. When it completes we are renting for 6 months

System

Do you own it in joint names?

G_M

If you own jointly,instruct the conveyancer to transfer £14K to each of you.

If it is in your sole name you could stillask for the above, but the conveyancer might send the full £28K to you.You ca then transfer £14K to your partner.


There would be no tax to pay on that transfer.

thomas1988

The apartment is just in my name. We are not married.

So on receiving the 28k from the solicitors I can transfer 14k to my partner with no tax implication?

ethank

You can do whatever you want with your money. You do not have to pay tax on giving money to your partner. He won't pay tax on it, but could have to pay tax on interest he earns from it.

thomas1988

Great so if used for a house deposit that’s fine

thomas1988

So he’s using it for a house deposit and to buy a car and pay off a small debt

G_M

It's irrelevant what he uses his money for. As explainedseveral times:


* you can give him whatever gift of money you want
* you pay no tax on the gift
* he pays no tax on receiving the gift
* he pays no tax on spending the gift (though might have to pay SDLT on purchasing a house)
* he might have to pay tax if he earns money from the gift (eg on the interest or investment)

xylophone

The OP and partner are co-habiting - it seems that the partner has been contributing to the mortgage/expenses despite not being a co-owner so that the OP wishes to make him a gift of half of the profit on sale.

There is no problem with his making such a gift which would be a PET- he might want to keep a record with his papers just in case there are IHT considerations at some point.

The OP goes on to say

When it completes we are renting for 6 months

- it is unclear whether this will be separately or together.