My partner is about to take a career break. We've got a lot of things like direct debits set up in her name which would be an effort to move, and I want her to have some cash to hand, so I'm planning on setting up a standing order to pay money from my account into hers. We're not married. Will she need to pay tax on the allowance? If the answer depends on the amount, what is the threshold?
No, in the UK you don't need to pay tax on gifts in general.
In theory there could be an inheritance tax issue. But it's highly unlikely to apply here. It could only apply at all if all of the below apply:
- you aren't married to each other
- you die within 7 years of a gift
- the total of the money you leave at death plus the gifts in the past 7 years is more than the inheritance tax threshold, currently £325,000
But even then the allowance would probably count as a "regular gift out of income" and so would be ignored completely:
Regular gifts from the giver’s income
There’s no Inheritance Tax on gifts from the deceased’s income (after they paid tax) as long as the deceased had enough money to maintain their normal lifestyle.