Buying a car with my partner

patsat

So my partner and I (long term relationship, loving together, not married) have decided to buy a car as mine needs to be replaced. She has been a named driver on my policy and car for the last number of years.

She wishes to use her savings towards the car as well as some of my money. Her contribution would be around €10,000.

What tax implications would be involved with this as the car would be going into my name and my insurance policy?

She would be using the car the car regularly and a named driver on the policy.

I'm not sure if it makes a difference but the money would be coming from a Spanish bank account, although would have been earned and tax paid in Ireland.

Calahonda52

has the existence of the Spanish bank acc been declared to revenue, regardless of where the money in it came from?

There are no tax issues, however as a named driver and regular user, it might fail the named driver smell test, I presume she has her own car?

Using hard cash for a depreciating asset is never a good idea unless you have loadsa

Fol20

Calahonda52 wrote: »

has the existence of the Spanish bank acc been declared to revenue, regardless of where the money in it came from?

There are no tax issues, however as a named driver and regular user, it might fail the named driver smell test, I presume she has her own car?

Using hard cash for a depreciating asset is never a good idea unless you have loadsa

What other way do you suggest buying the asset. Using pcp or bank cash to buy a depreciating asset is worse if that is what you are suggesting

patsat

Calahonda52 wrote: »

has the existence of the Spanish bank acc been declared to revenue, regardless of where the money in it came from?

There are no tax issues, however as a named driver and regular user, it might fail the named driver smell test, I presume she has her own car?

Using hard cash for a depreciating asset is never a good idea unless you have loadsa

Spanish bank account is all good with Revenue, they are informed.

As for the named driver, it isn't a problem so far. And by regular use, I would still be driving the car pretty much 95% of the time.

My main worry was her putting 10k towards something that would go into my name.

As for not using hard cash, Our train of thought is to pay back the saving account as we would a loan,except without the interest rate!

But why would it be a bad idea??

Calahonda52

I just prefer to keep cash instead of using it on a depreciating asset like a car, I prefer to match the cash payments with the use, am an accountant

However it is not a bad idea if it does not sit well with you

Fol20

Fol20 wrote: »

What other way do you suggest buying the asset. Using pcp or bank cash to buy a depreciating asset is worse if that is what you are suggesting

Using PCP or a loan is far better than burning savings. Even the extremely wealthy borrow for their big purchases as it makes financial sense.

In this case it depends on how much of their savings 10k makes up. If its nearly all their savings its bad if they have 100k then its fair enough to use 10k.