Is "settlement" money on separation tax exempt?

MsTea

Hi,
I'm separating from my ex partner and what we are trying to do is that I take over the mortgage and stay in the house with our son. As recognition of his equity interest in the house (although obviously we're not selling it) I will be paying him a sum of money so that he can put down a deposit on a new home for himself. Is this sum of money tax exempt for him?
Thanks,
MsTea

MsTea

Anybody?

CiarraiAbu2

You are saying you are separating not separated if that is the case gifts between spouses are exempt.

MsTea

Thanks. We are not actually married though so possibly spousal tax relationship doesn't apply?

CiarraiAbu2

Cohabiting should also be covered - from revenue - look up cat/gift tax

Under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 a redress scheme has been introduced for opposite-sex cohabiting couples who are not married and same-sex cohabiting couples who are not registered in a civil partnership. The redress scheme provides for a broadly similar range of orders as are available to married couples when they separate or divorce.

The aim is to provide protection for a financially dependent member of the couple if a long-term cohabiting relationship ends either through death or separation. The Act came into effect on 1 January 2011.

MsTea

CiarraiAbu2 wrote: »

Also covers civil partners

Thanks. We're not civil partners either, just living together.

CiarraiAbu2

changed that, posted wrong part before i realised it

MsTea

CiarraiAbu2 wrote: »

changed that, posted wrong part before i realised it

Cheers.