Did you know that there are opportunities to reduce your personal tax bill by prioritising your Family Tax Planning? To find out more information please read our latest blog below.
Why is Family Tax Planning important?
You should be aware that there may be tax benefits of transferring your personal allowance to your partner. It is also important to consider the potential tax charges for inheritance and plan ahead.
If you earn less than your partner, then you can transfer £1,250 of your personal allowance to them in 2019/20 by taking advantage of the marriage allowance.
You should know that you need to earn less than £11,250, to be able to transfer your personal allowance without paying tax.
You are only eligible for marriage allowance if either you or your partner earn less than the personal allowance and the other is a basic-rate taxpayer.
Inheritance and the family home
If you were to pass away and leave your home to your partner, then they will not have inheritance tax deducted.
But, if you were to pass away and leave your property to your children, then they will have to pay inheritance tax if the value of the property is above the threshold of £325,000.
You should make sure that you priorities your financial planning with Brexit approaching, if you need any advice then please get in touch and we can help you.
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