Financial question re cohabiting

[ilovepineapplesreally]

(I've name changed for this).

I'm not really sure if this is a legal question or financial. I cohabit with my partner of 5 years (we own the properly 50/50), and my question is whether not he would be allowed to transfer money to me without tax or other implications?

For example, my working hours are changing, and I may stay home with the kids more. Could he transfer me, say, £2,000 per month, from his own sole account, to my sole account 'freely' or is it not legal/financially allowable if we aren't married?

Thank you for any advice.

My other half transfers me £1500 a month for bills, perfectly legal. We are not married.

But, if you have kids together I would highly recommend you get married for the security that brings.

Why would it be illegal to transfer money I don't understand

thank you for such a quick response - yes we are in discussions over that and it is going to be happening, but was just wanting to check re transferring monies before that, don't want to end up with a hefty tax bill or something like that!

It's fine, the transferring of money as a gift (which this isn't, it's maintenance) is only an issue for inheritance tax or deprivation of assets for eg care home fees purposes.

Thank you. I wasn't sure if it only becomes an issue if inheritance tax kicks in.. (but as we are both in 40s I would hope that won't be an issue). Seems like ok to transfer 'maintenance' money freely which is good!

I guess, if it was an issue, if we put it into a joint bank account, but only I withdraw, then technically he isn't actually gifting it to me?

There are no legal or tax implications I can think of. You could have a joint account you both pay into for shared expenses of living together and having children. Money from your partner doesn't need to be declared to HMRC.

If you claim benefits you have a joint claim if you live with someone. So the only issue would be if you were living with your partner but claiming income based benefits as a single parent. That would be fraudulent.

I am assuming that is not the case so there is no problem sharing finances as an unmarried couple with children. However for security and peace of mind you should sit down together and discuss how to manage your finances going forward, agree what is fair and how you want to plan for your shared future. You need to draw up legal documents, insurance and wills etc. as well.

No, this is not an issue for inheritance tax. Regular payments to another person such as these are exempt provided he can afford the payments after meeting his normal living costs and he pays from his regular monthly income.

Depending on how much you are reducing by, I think if you're married and don't use your tax free allowance you can transfer some of it to him so getting married could also get you a tax break.