Have you ever wondered about the financial benefits of getting married? While you’re high on love and you plan to get married to your lover or your beloved, it is most likely that you won’t think of the financial pros and cons of this lovey-dovey affair. Did you know that the government is requesting civil partners and married couples to register for a brand new tax allowance? However, it won’t be of too much benefit to the younger people who are planning to tie the knot. Nevertheless, marriage is something that provides older people with lots of financial advantages. Only by claiming ‘I Do’, you can keep a considerably huge amount of your hard-earned pounds away from Uncle Sam’s grip.
The National tax director at Smith & Williamson, Richard Mannion says that majority of the married couples won’t ever be able to earn a penny from the new break given on the tax forefront. Presently, an average wedding will cost 15,000 pounds in the UK and hence this doesn’t seem to be like an incentive. Read on to know about the few tax perks of getting married in UK.
#1: Availing the marriage allowance
Did you know that the married couples can easily save up to £250 in any financial year with the help of marriage allowance? A spouse that earns less than £12,500 a year can easily transfer £1250 of their tax-free allowance to the other spouse. However, the higher-earning spouse should be earning an income between £11,0001 and £45,000.
#2: Assets can be transferred sans capital gains tax
Ideally, a person who sells an asset for gaining profit can obtain up to £11,300 in the form of profit in the tax year before the charge gets due. However, before this sale, the assets can be easily transferred between civil partners or spouses without any liability for taxes in order to use the combined capital gain tax allowance. In any way, by splitting the assets, the couple would be able to save several dollars in the form of taxes. This isn’t an option that’s available to unmarried couples as this movement of assets would only be possible between co-habiting couples.
#3: A huge gain on death
Upon death, unmarried couples are allowed by the law to pass on assets of a value of £325,000 but any amount beyond this would be subject to an inheritance tax of 40%. So, in case a partner has left a house that surpassed the aforementioned value, the inheritor (or the partner) may have to end up selling it off. On the other hand, in case of a deceased spouse, he can pass on an estate which is worth any amount to the surviving spouse without having to think of any tax payments. There won’t be any inheritance tax too that would be charged. So, If you still haven’t married your lover or your beloved, don’t waste any further time in completing the deed so that you can avail the above mentioned financial benefits apart from the satisfaction of staying together.