Thursday 8 February 2018, It might not be the most romantic reason to propose, but getting married or entering a civil partnership could have tax benefits for you and your spouse. Sarah Ghaffari, ICAEW Technical Tax Manager, explains some of the tax benefits of getting engaged this Valentine’s Day.
A marriage creates more of a ‘fluid’ environment for CGT and IHT, so the couple can pass ownership of assets between them free of capital gains tax and inheritance tax, regardless of the amount.
While the standard rate of IHT is 40% on estates worth more than £325,000, you can pass on your estate to your surviving spouse completely tax free, regardless of the amount. When the surviving spouse dies it can be possible for up to £650,000 to be passed on to family and friends tax-free.
Sarah adds: “If you are considering proposing anyway, these tempting tax exemptions could settle your doubts.”
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