I can now confirm myself fully qualified to comment on the above subject, having become a \u2018Mrs\u2019 just over a month ago. In the run-up to the big day there were of course all the usual last minute details to finalise, memorising my vows, the bridesmaid gifts, the decorations and \u2026. my husband-to-be deciding to write a blog on the tax advantages of getting married (he is an accountant after all!!). I would like to add that he had not yet even written his groom\u2019s speech at this point. Who would marry an accountant? I hear you ask\u2026\u2026.<\/p>\n
So in response I have decided to write about the tax considerations of what will happen next – income tax and inheritance tax planning and Wills. Who said romance was dead?<\/p>\n
One of the main advantages of marriage (from a pure tax perspective) is the no gain\/no loss rules for spousal transfer. Spreading ownership of assets is an effective method of reducing tax liabilities for income tax to take advantage of any lower tax rates that your respective spouse may fall into. This is a common tax planning tool for investment income and rental income \u2013 although it is worth remembering that you MUST transfer both the tax advantages and the beneficial ownership of the said assets. This means that when the asset comes to be sold, the proceeds and any tax bill are for the transferee\u2019s enjoyment and responsibility. There is nothing to stop you moving the asset back into joint ownership before any sale of course and thus benefitting from both spouses\u2019 annual exempt amounts, currently \u00a311,100 each.<\/p>\n
Another valuable relief as mentioned in the recent Summer Budget is the increase in the main residence inheritance tax nil rate band. This increase is only available though when a person downsizes or ceases to own a home and assets of an equivalent value are passed to direct descendants. But, in theory this means that by 2020 the potential nil rate band on the second death could be up to \u00a31,000,000 \u2013 hopefully any use of this is far off in the future in the case of our recent nuptials (although my husband may feel differently!)<\/p>\n
Lastly, it is always a good idea to revisit your Will and update this for any changes to your circumstances. This is particularly true when getting married because in most cases any previous Will that has been made is automatically cancelled on marriage. And on that cheery note I am off to practise my new signature \u2026.<\/p>\n","protected":false},"excerpt":{"rendered":"
I can now confirm myself fully qualified to comment on the above subject, having become a \u2018Mrs\u2019 just over a month ago. In the run-up to the big day there were of course all the usual last minute details to finalise, memorising my vows, the bridesmaid gifts, the decorations and \u2026. my husband-to-be deciding to[…] <\/p>\n