“Love is in the air, everywhere I look around, Love is in the air, every sight and every sound, And I don’t know if I’m being foolish, Don’t know if I’m being wise, But it’s something that I must believe in, And it’s there when I look in your eyes…”
My arse. Being single – or should that be self-partnered? – I have about as much interest in Valentine’s Day as I do in the recent Campaign article headlined “A guide to owning your sonic identity in the metaverse”.
I may have zoned out but it seems everyone else is fully focused, no matter how tenuous the link, although Perrys Chartered Accountants – and their PR agency PMW Communications – has to take top prize for their press release entitled “Give the gift of tax relief this Valentine’s Day”.
You see, apparently “if you’re married, in a civil partnership, or even planning to get down on one knee, then there’s a range of tax reliefs available that you should be aware of this Valentine’s Day”.
Hooked already? Well, read on: “As gift wish lists go, tax relief might be a bit more Martin Lewis than Marvin Gaye in the romance stakes, but who wouldn’t fall in love with the idea of having a bit more money in their bank account? That’s why we have put our heads together and come up with a whole bunch of tax saving ideas that could leave you smelling of roses.”
Now, apparently, if you (or your spouse) are earning a wage below the Personal Allowance of £12,570, (yep, that’s me) then you could be eligible for Income Tax relief. This tax break, known as marriage allowance, lets a husband, wife or civil partner transfer £1,260 of their personal allowance to the higher earning partner. This tax saving can be worth up to £252 per year. (Whoopy doopy!)
And, if you’re married and have sizeable assets, then transferring them to your spouse could help to reduce your Capital Gains Tax liabilities. You can also use an inter-spouse transfer prior to disposal to make use of your partner’s tax-free annual exemption, which currently exempts the first £12,300 of gain from tax, thus, achieving tax free gains of up to £24,600 between you in the current tax year (the tax-free annual exemption will reduce to £6,000 each from 6th April 2023).
What could be more romantic than inheritance tax planning?! Most couples do not currently have a will in place and many have not considered the potential inheritance tax bill on their assets.
However, if you are married, or in a civil partnership, then with mirror wills in place you can benefit from a transfer of your partner’s nil rate band for inheritance tax. This can delay a potentially hefty tax bill and give you more time to plan or to make lifetime gifts to reduce the overall inheritance tax payable on your family’s wealth.
For unmarried couples, the nil rate band cannot be transferred, and inheritance tax would be payable at 40% on an estate where assets exceed £325,000 (an additional residence nil rate band of £175,000 may also be available for those passing a qualifying residence worth £500,000 or more to a direct descendant).
So, not only is being single decidedly dull, you’re destined for a life as a pauper, too! Happy bloody Valentine’s you smug bastards…
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