If love is in the air for you this Valentine’s day, there may be some tax benefits to consider:
With regards to Inheritance Tax, gifts given in consideration of marriage or civil partnership may be exempt from taxation. These include:
- The first £5,000 of a gift by a parent of either spouse
- The first £2,500 of a gift by any other ancestor such as a grandparent
- The first £2,500 of a gift (prior to marriage) by one party of the marriage to the other.
When you get married, the Marriage Allowance lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner. If you aren’t working this could reduce your partner’s tax by up to £250 in the tax year (6th April to 5th April the following year).
In terms of Capital Gains Tax, assets can pass between married couples and civil partners tax free. So you can put your house and/or other assets in your new spouse’s name without incurring a tax liability.
For more expert advice get in touch with Angela Keery, Tax Director, Baker Tilly Mooney Moore Email angelakeery@bakertillymm.co.uk or Tel: 028 9032 3466.