Whether you celebrate Valentine’s Day or not, we are sharing the love with you this Valentine’s Day with some fun facts when it comes to tax breaks with a loved one.
I’m not going to get too romantic, but Valentine’s Day becomes a bit more interesting to an accountant when there are some tax savings!
The ICAEW (my accounting institute) have highlighted the tax breaks for getting married or entering a civil partnership, so will these be enough to get you to pop the question?!?
- For a wedding gift, each parent can give up to £5,000 to the happy couple with no tax implications. And the grandparents can give £2,500 each.
- If one of the married couple earns under £12,5000, they can transfer some of their tax-free allowance to their other half. This would save £250 in tax in the current year. To qualify, both must be earning under £50,000.
- You can double up on the annual Capital Gains Tax exemption – by buying/selling an asset together, you can now make a profit of £22,600 tax-free.
- There are far more generous Inheritance Tax allowances when you’re married.
And, with Louise working at JDA, I can treat her to a £50 gift with the taxman chipping in with tax relief. Romance isn’t dead in the Davies household!
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