Expert shares three 'significant tax benefits' of being married
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Couples can also reduce or eliminate entirely potential tax on profits crystallised on the sale of assets through using two sets of annual capital gains tax exemptions, which again, will be
beneficial this year with the individual CGT allowance being halved in April from £12,300 to £6,000, and then again to £3,000 in 2024. Ms Higham continued: “The key here is that married
couples and civil partners can transfer assets between themselves – known as “inter-spousal transfers” – without triggering a tax liability. This option is not available to unmarried
couples, as the movement of assets between cohabiting couples is a disposal for capital gains purposes and would negate the benefits of this exercise.” INHERITANCE TAX PRIVILEGES Unmarried
couples can pass on assets valued up to £325,000 tax-free upon death (the inheritance tax nil rate band), but anything above this is potentially subject to 40 percent inheritance tax.
However, Ms Higham said: “A deceased spouse or civil partner can pass an estate of any worth to the surviving spouse without immediate tax consequences.” The IHT nil rate band that is unused
by the deceased can be passed on to the surviving spouse for their use in the future - creating a potential nil rate band of £650,000 for the survivor.