Tax Tip – Married Couples And Civil Partners

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For married couples and civil partners, Marriage Allowance is an option that allows an individual to transfer 10% of their personal allowance (rounded up to the closest £10) to their partner – as long as neither of them are paying tax at a rate higher than Basic Rate (20%). For couples that aren’t fully utilising their personal allowance, it makes it possible to save tax up to £252 (£1260 – the allowable transfer amount @ 20%).

If only one individual in the marriage or civil partnership is working, and the other has no taxable income, it’s possible to transfer income-producing investments to the non-working partner, in order to utilise their personal allowance if that income would be taxable on the working partner. This could be an option available for shares, rental property, etc. Under Capital Gains Tax rules for spouses and civil partners, this can be done under a no gain / no loss basis – which means it doesn’t trigger a Capital Gains tax liability.

If you’d like to find out more about sharing your financial investments and funding with your partner, and whether you can reduce your tax bill together, you can contact one of our experts for a no-obligation consultation!

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