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Money gift from boyfriend - no civil partnership.

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Money gift from boyfriend - no civil partnership.

edited 30 November -1 at 1:00AM in Cutting Tax
4 replies 1.1K views
AngelhoneyAngelhoney Forumite
6 posts
edited 30 November -1 at 1:00AM in Cutting Tax
My sister signed over half her property to her boyfriend without any sale agreement as such. However they had agreed informally that he would "pay" for his share with a cash gift of 75,500. He wants to transfer that money into her account now. Is there any sort of declaration that has to be made? His estate will be under the 325,000 Inheritance tax limit - so can he just hand over the lump sum without being liable for any tax now? They are not married nor are they registered as civil partners. Both are in their mid fifties. They have a joint mortgage and have lived together for several years in Scotland. Thanks for any advice in advance!

Replies

  • Keep_pedallingKeep_pedalling Forumite
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    It sounds like an attempt to avoid stamp duty. There are no actual gifts here in reality it is a straight forward sale.
  • getmore4lessgetmore4less Forumite
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    Probably connected transactions with the BF going on the mortgage.

    75k + 1/2 the mortgage being the consideration.
  • Thanks very much for the replies and for clearing up any confusion with this type of transaction. I've had a look at the LBTT page and it looks straightforward for them to simply declare the transaction to keeps things legal. As has been pointed out, it's well under the threshold. Do they need to draw up sale documents for the LBTT or is it enough to inform them that she signed over the half of the house and is receiving this money? His name is on the deeds but they didn't do anything else with their lawyer other than a signature handover.
    Thanks.
  • getmore4lessgetmore4less Forumite
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    What was 1/2 the mortgage when he got added to it?
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