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Posted Wed, 17 May 2023 21:42:04 GMT by IAmJustAsking
I am considering transferring some funds from my personal savings account to my wife’s, as this would allow us to use her Personal Savings Allowance and her lower personal tax rate. The origin of savings is my income. We intend to use this money within the next few years as a deposit for a house that we will jointly own. Would doing so cause any potential tax issues I should be aware of?
Posted Wed, 24 May 2023 12:52:34 GMT by HMRC Admin 32

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.

Further guidance can be found here.

Tax on savings interest

Tax on dividends

Thank you.
Posted Thu, 25 May 2023 08:11:15 GMT by Bella Boo
Hmrc admin, wouldn't this be caught by settlements and therefore be ineffective for tax purposes, as in TSEM4205?
Posted Thu, 25 May 2023 16:54:10 GMT by HMRC Admin 10
Hi Bella Boo
Cash gifts do not attract income tax or capital gains, whether the gift emanates from the UK or abroad.  
Any interest the gift generates once you receive it, may be subject to tax.  
TSEM4205 covers gifts that are not cash based.
Posted Fri, 26 May 2023 07:20:38 GMT by Bella Boo
When did they change the rules so that it doesn't apply to cash? If the rules have changed to exclude cash gifts then you may want to remove examples 1 and 3 of the following hmrc helpsheet and change the description hmrc provide of settlor. ;1.1 A settlor A settlor is a person who ‘makes a settlement’, that’s someone who puts or gifts money or other assets into a settlement. This is known as ‘settling’ property and it can be done directly or indirectly"
Posted Fri, 26 May 2023 12:30:33 GMT by Bella Boo
I'm sorry Admin, my post seems to have lost its structure. I tried to break it up to make it easier to read as I appreciate you've got a lot of other people to reply to.

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