It’s hard to ignore the constant stream of articles and reminders that overwhelmingly in the UK marriage is on the decline. The 2021 ONS report says the number of adults who have never been married or in a civil partnership has been climbing from 26.3% in 1991 to 37.9% in 2021.
However, those who are unmarried but starting families together may be missing out on huge financial benefits. Marriage encompasses more than just love and commitment; it offers a wealth of advantages that can bring both financial stability and some unexpected tax perks.
Due to the legal status of a marriage, couples that tie the knot have a lot of options open up to them when it comes to accessing tax benefits.
Marriage tax allowance allows you to transfer £1,260 of the amount you can earn tax-free each tax year, to your spouse or civil partner if they earn more than you. This is also known as your personal allowance. Marriage tax allowance is available for married couples or those in a civil partnership with a combined household income of under £62,840.
According to recent studies, an estimated 2.4 million couples are missing out on this benefit by simply not claiming it! If your claim is successful, it will lower the higher earner’s tax bill for the tax year, but you can also backdate your claim for a further four years.
But that’s not all.
Being married means that transferring or leaving assets, such as property, in the event of your death to your partner comes without any tax implications, providing peace of mind and financial security. Plus, your threshold for Capital Gains Tax doubles to £12,000 if you make a profit on selling assets as a couple, leaving far more money in your pockets.
Even retirement can be financially improved if you’re married to your partner. Couples where one person isn’t on a full state pension could be entitled to extra payments should the other partner pass away. This entitlement will be calculated on a range of factors so it’s recommended you seek advice from an expert to see what your entitlements are.
Navigating the complicated world of tax can be a daunting and sometimes complicated. Using a reputable claims management company, you can be safe in the knowledge that your tax rebate will be handled by the experts, leaving you with more time to spend with your family!