![]() It may also be a good idea to consider getting life insurance if you are not already covered, particularly if you have financial commitments that one person would not be able to meet on their own, like a mortgage or providing for children.Ĭompare life insurance policies How will your credit record be affected?īeing 'financially associated' means you will both leave a record on each other's credit history showing that you have had a financial relationship together. You will need to look into setting up a new will, which could name your spouse as your primary beneficiary. Do you need to update your will?Īs soon as you get married, your existing will automatically becomes invalid. Likewise, if one of you is a higher rate taxpayer and the other basic rate, you can apply the same rules and take advantage of the rate of tax of the lower rate taxpayer. If one of you is a basic-rate taxpayer and the other does not pay tax, you can keep all your savings in the name of the non-taxpayer and enjoy tax-free interest on it all - providing the interest earned does not take them over the taxable income threshold. Getting married or being in a civil partnership can mean you pay less tax on your savings interest if one of you is in a different tax bracket to the other. Your capital gains tax exemption is also effectively doubled, and you and your spouse can transfer assets between each other tax-free during your lifetime. ![]() Also, you can leave any possessions and property to your spouse tax-free after you die, meaning the surviving partner effectively gets double the tax-free allowance for inheritance tax purposes. More information on the Marriage Allowance Tax-free giftsĪny monetary gifts between you and your spouse made during your lifetime are tax-free. To apply, one partner must be earning less than their personal allowance, of £12,570, or not paying any income tax, and the other must pay basic-rate income tax and earn more than £12,571. It allows one partner to transfer £1,260 of their unused tax-free personal allowance to their partner. This allows a couple to save up to £252 on their tax bill if they are married or in a civil partnership. If you were both born after 1935, you may be able to claim Marriage Allowance, which the government introduced in April 2015. More information on the Married Couple's Allowance Marriage Allowance It can reduce your annual tax bill by £353 to £912.50. If you or your partner were born before 6th April 1935, you’re married or in a civil partnership, and you live together, you could get the Married Couple's Allowance. You should inform HM Revenue & Customs (HMRC) of your new marital status to make sure you are taxed correctly. The picture is different today, however, there are some important things to note that will affect your finances after marriage or a civil partnership. ![]() Married couples used to be viewed by the government as one single taxable entity and so you would be taxed less after getting married. ![]() There was a time when making the leap from single life to married bliss came with a great range of tax incentives. ![]()
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