07 October 2013
Family Law Solicitor on tax perks for married couples
Family Law Solicitor Lorraine Harvey discusses the newly proposed tax perks for married couples announced last week.....
There are of course already a number of tax perks to marriage and Civil partnership.
Married couples can transfer assets such as property and shares to each other with no capital gains charges. They also each have a capital allowance of £10,900. The biggest advantage is the inheritance tax. Married couples can transfer assets to each other on death without paying tax, whereas unmarried couples with a combined value of more than £650,000 face inheritance tax as they can only transfer up to £325,000 free of tax. Estates valued at more than this are liable to tax at 40%.
It’s unlikely that the new proposal from the government is going to encourage couples to run down the aisle; particularly given the rising costs of getting married, now reportedly to be £22,000. However, many couples who are engaging in Cohabitation are sitting on massive tax liabilities in the event that their partner dies. Some will miss out on thousands of pounds from enhancements of their state pensions.
Marriage isn’t for everyone, and for some families it can create as many problems as it solves. It would appear that couples are reluctant to tie the knot due to the costs of weddings and the costs of Divorce. What’s important is ensuring that you get legal advice particularly if you own your own home. At Slater and Gordon we can advise on living together agreements and Pre-nuptial Agreements. These agreements can provide a framework in the event of relationship breakdown.
By Family Law Solicitor Lorraine Harvey.
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