Taxing Valentine’s for the unmarried
13 February 2015
As thoughts turn to romance over the weekend it is timely for those in long term relationships, but not yet married, to consider the financial benefits of marriage or civil partnerships, says national financial planners LEBC Group.
While modern social moves have removed the stigma of "living in sin" the taxman has yet to offer any breaks for cohabiting couples. In fact there are significant tax disadvantages for them compared to their married friends.
These include otentially paying inheritance tax on assets inherited from each other, no scope to share income tax allowances, o capital transfer tax free gifting of assets, and no right to inherit NISA allowances from each other on death.
Kay Ingram, head of individual savings and investments at LEBC says she is responsible for many couples finally tying the knot following a consultation with her.
“We urge all couples to review their finances and consider how best to arrange their financial affairs. As the end of the tax year approaches, now is a good time to take stock of ownership of assets and income and to ensure that everything is as well arranged as possible to protect family members from the unexpected,” says Ingram.