# Tax on cash from separated wife - Spanish taxes



## michael4477 (Nov 19, 2017)

My wife and i have been separated for over 20 years, in that time she has remained a UK resident and i a Spanish resident, i am 73 years old.
when we separated circa.1994 we sold a large mortgage free house and from the proceeds purchased a smaller house for my wife and invested is a bond and bought premium bonds, the small house was jointly owned.
in 2013 i transferred my 50% to my wife for nil consideration so she is now the sole owner of the title.
She does own 50% of my home in Spain.
The investment bond and premium bonds ere in her name, i should add at this stage that the separation was amicable and we have remained good friends.
I pay her a moderate monthly allowance and she receives all interest and winnings from the investments.
I am in the process of divorcing my wife by mutual agreement, when granted i will enter a Civil Partnership with my long term partner who is a Spanish resident, the main purpose is to reduce IHT on property and cash in Spain i leave to my partner when i die.
My wife has agreed to my suggestion to release some equity by reducing the investment bond holding to £85,000 ( the level where banks guarantee your money if the bank goes bust ) and sell the premium bond holdings, my share over €20,000.
As i have no official connection with this arrangement how will Hacienda treat this for tax purposes, is for instance a payment from a UK resident wife to a Spanish resident husband tax free ?, any paper trail of this money will go back to the sale of our big house which was purchased with UK tax paid money.
I am assuming its better to make this happen before we are divorced.


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