I am a French resident and my girlfriend is English. We are…

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As a French resident, transferring £40,000 to your girlfriend in the UK for the purpose of contributing towards a house purchase can have tax implications both in the UK and in France. Here are some points to consider:

UK Tax Implications:

• If your girlfriend is a UK tax resident, there should not be any UK tax implications for her to receive the money as a gift.
• However, if your girlfriend is not a UK tax resident, she may still have to pay UK income tax on the interest earned on the deposit. This will depend on her individual circumstances.
• If you are considered a UK domiciled individual, you may be subject to UK inheritance tax if you were to pass away within 7 years of the transfer.

French Tax Implications:

• As a French resident, you may have to declare the transfer of funds to your girlfriend as a gift on your French tax return. You may be subject to French gift tax if the total value of your gifts to your girlfriend in a given year exceeds €31,865 (2021).
• If you do not report the transfer on your French tax return, you may face penalties and interest charges.

Legal Transfer:

• To transfer the money legally, you can use a bank transfer. Ensure that you have all the necessary information for your girlfriend's bank account, including the IBAN and SWIFT/BIC codes.
• It's also advisable to keep a record of the transfer, such as a bank statement, as proof of the transaction.