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Posted Thu, 01 Aug 2024 17:39:32 GMT by taxenq123
I'd like to transfer some amount of money to my cohabiting partner. We are not married nor in a civil partnership. What is the tax implication of doing so? Optimistically, I assume we both would live longer than 7 years from the date of donation so, in my understanding there would be no potential inheritance tax to cover. Can she receive such transfer without worrying about any tax implications? I'm aware that if this money generates any interest in her account she would be liable to cover any tax related to that. As I said, the intention is to put this money into ISA so, we can both maximise the ISA allowance.
Posted Mon, 05 Aug 2024 15:13:57 GMT by HMRC Admin 10 Response
HI
There are no tax implication arising from a cash gift.  You are correct that any interest the cash gift generates, is taxable and should be declared and that inheritance tax may be payable on the gift if the the 7 year period for inheritance tax is not met.

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