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Happy Valentine’s Day
14 February 2018
The ICAEW has said 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!
The big one is the family estate, of course. A marriage creates a more 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 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.
Wedding gifts to the happy couple from friends and family can also be tax effective! Parents can each gift up to £5,000, and grandparents up to £2,500 without facing any tax implications.
The ATT used Valentine’s to remind married couples and those in a civil partnership not to miss out on the Married Allowance. Now that’s something romantic to do on Valentine’s Day!
If someone earns less than £11,500 and their spouse/civil partner earns more than £11,500 but less than £45,000 they can show how much they care by gifting some of your personal allowance. It could save the higher earner up to £230 for the 2017/18 tax year.
While it is estimated 4m couples are eligible to make the claim just 2.2m couples have done it.
ICAS went all romantic too, but did it by numbers.
It explained on average men spend around £50 on their partners on Valentine’s Day. In Scotland this figure drops to £26, make of that what you will! US men spend over £100.
UK women, on the other hand, spend just £32 on average – that’s 36% less.
We also discovered that 14 February is the 9th most popular day for weddings in the world.
ICAS also discovered that 39% of British couples don’t celebrate Valentine’s Day!
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