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Posted Mon, 04 Sep 2023 17:31:42 GMT by taxnoob
Hello. I'm struggling as I write this post as it's really personal to me. Without going into too much details, I would like to provide a bit of our background before putting my question to you, About 18 months ago, I received a large settlement from an employer due to them being found guilty of discrimination. At the time the settlement was received, it was fully taxed at source by HMRC. However due to the serious problems caused during and after my employment by the employer, I was left absolutely devastated. My mental/physical health severely deteriorated to the point where I couldn't cope and I was close to suicide and losing lots of money through gambling. My relationship broke down with my family and friends and I even lost our family home. My mental/physical health is still down and I'm very addicted and can't stop gambling. Because I'm spending hundreds and sometimes thousands, my spouse has had to take control, taking my bank cards off me and managing our finances, especially the settlement lump sum to stop me from ruining us. I want to get better so I'm trying to get the necessary treatment and support that is available. I'm happy to hand over my money to my spouse, I appreciate it's necessary to stop me blowing all the money and putting us on the streets. Our current status is that I work F/T earning approx £23k p/a. Due to kids and caring responsibilities, my spouse only works on zero hours contract earning approx £5-6k per annum. Most of my earned salary is also going to my partner where she keeps it in our joint bank account to spend on children, food, bills etc and the remaining she transfers to her savings account(s). So my question is would giving my money to my wife cause any potential tax issues?
Posted Wed, 06 Sep 2023 13:24:04 GMT by HMRC Admin 20 Response
Hi taxnoob,

No. As the income has already been taxed then HMRC have no interest in how the income is then distributed/spent.

Thank you.

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