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Finance of marriage

There is no legal definition of living together, but it means living together as a couple without being married. The trend is an increasing proportion of men and women delay marriage or not getting married at all. This post considers the financial advantages of being married. Have you considered the finance of marriage?

marriage money

Tax Perks

You meet someone special, fall in love, and want to spend the rest of your life with them. The odd thing is that the best marriage tax perks are centred around death; spooky! As with all tax comments it can seem complicated.

  • Marriage allowance (for lower-rate taxpayers). Married couples can save up to £230 in tax through the marriage allowance.
  • Capital Gains advantages, means that before the sale, the assets can be transferred freely between spouses/civil partners to utilise their combined capital gains tax allowance (two x £11,300).  This translates into no capital gains tax is paid on £22,600 profit.
  • Unused inheritance tax allowances can be transferred. For example, if a wife left everything to her husband, so there was no inheritance tax to pay, her entire £325,000 allowance would pass across to him too. So now when he dies, he has a £650,000 allowance. The same also applies to any unused portion of the £125,000 property allowance (which reduces tax that the beneficiaries of the will have to pay on the sale of a house). Inheritance tax is complex.
  • Gifting rules do not apply to spouses. Otherwise, you give money or assets to someone else during your lifetime and your death occur within 7 years from the date of the gift, then the beneficiary may be liable to inheritance tax.
  • Inherit your spouse's ISA allowance. In practice, on your death, your surviving spouse or civil partner will receive a one-off ISA allowance equal to the total value of your ISAs. This is called the Additional Permitted Subscription allowance and is in addition to, and independent of, your spouse’s or civil partner’s annual ISA allowance. 

Always write a will as this document tells everyone what should happen to your money, possessions, and property after you die (your estate). If you forget to make a will, the law decides how your estate is passed on. For example, in England and Wales the law states the spouse inherits up to £270,000 worth of assets, all the deceased's personal possessions, half of the remainder of the estate. The other half is divided equally between the children.

ChildMax pays your take home salary while you’re on 12 months’ unpaid leave, caring for a sick child. It starts from £49.50 or for easy budgeting an initial payment of £8.25 followed by 11 monthly payments of £3.75.

Visit at www.insurewithmax.com  or call the UK call centre 0333 323 0098 for more information.

Important: This article is provided for information purposes only. Please speak to a Financial Adviser for taxation advice.

Sources:

https://www.ii.co.uk/analysis-commentary/financial-pros-and-cons-marriage-ii512750

https://www.guidesforbrides.co.uk/business-information/marriage-statistics-for-2016-whats-changed

https://blog.moneysavingexpert.com/2018/06/martin-lewis--is-there-any-point-in-being-married-/

 

 

Date: 22 February 2021 by max robinson