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With Valentines Day having just passed and whilst romance is still in the air I thought this was an ideal time to talk about marriage - more specifically the tax implications of being married or entering into a civil partnership. You may or may not be surprise to hear that as a Tax Adviser clients often ask 'are there any advantages to being married?' and the answer is yes there can be. Here are five (quite unromantic!) ways you could be better off by saying ‘I do’:
A couple are only allowed one qualifying main residence between them for the Principal Private Residence Relief. If you each own a property and continue to use them both to live in then unfortunately only one of them can be treated as your main residence.
Marriage could also help other people save Inheritance Tax. Gifts on marriage either between the couple themselves, or from family members could be ignored for Inheritance Tax purposes. Parents can gift £5,000 each whilst grandparents can gift £2,500 each.
And finally what if it all goes wrong? When it comes to separation and divorce timing is everything so speak to us as soon as possible. You may also find the article ‘A Taxing Divorce’ written by my colleague Helen Thornley useful.
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