{"id":2032,"date":"2018-11-09T18:44:36","date_gmt":"2018-11-09T18:44:36","guid":{"rendered":"https:\/\/www.just-family-law.com\/blog\/?p=2032"},"modified":"2020-05-12T14:02:42","modified_gmt":"2020-05-12T14:02:42","slug":"tax-advantages-of-civil-partnership-and-marriage-10-faqs","status":"publish","type":"post","link":"https:\/\/www.just-family-law.com\/blog\/index.php\/2018\/11\/09\/tax-advantages-of-civil-partnership-and-marriage-10-faqs\/","title":{"rendered":"Tax Advantages of Civil Partnership and Marriage &#8211; 10 FAQs"},"content":{"rendered":"<h4><strong><a href=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage.jpg\"><img data-attachment-id=\"2100\" data-permalink=\"https:\/\/www.just-family-law.com\/blog\/index.php\/2018\/11\/09\/tax-advantages-of-civil-partnership-and-marriage-10-faqs\/tax-advantages-of-civil-partnership-and-marriage\/\" data-orig-file=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage.jpg\" data-orig-size=\"1237,928\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Alona Grebenyuk&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;All rights reserved&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Tax Advantages of Civil Partnership and Marriage\" data-image-description=\"\" data-medium-file=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-300x225.jpg\" data-large-file=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-1024x768.jpg\" decoding=\"async\" loading=\"lazy\" class=\"alignleft size-large wp-image-2100\" src=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-1024x768.jpg\" alt=\"Tax Advantages of Civil Partnership and Marriage\" width=\"660\" height=\"495\" srcset=\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-1024x768.jpg 1024w, https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-300x225.jpg 300w, https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage-768x576.jpg 768w, https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2018\/11\/Tax-Advantages-of-Civil-Partnership-and-Marriage.jpg 1237w\" sizes=\"(max-width: 660px) 100vw, 660px\" \/><\/a>1. Tax advantages of civil partnership and marriage<\/strong><\/h4>\n<p><span style=\"font-weight: normal;\">Did you know there are tax advantages to being in a civil partnership or marriage? This blog looks at the savings you can make on income tax, capital gains tax and inheritance tax.\u00a0<\/span><\/p>\n<h4><strong>2. &#8220;Common Law Marriage&#8221; does not exist<\/strong><\/h4>\n<p>If you&#8217;re living together you don&#8217;t have the same rights or tax advantages as if you&#8217;re in a civil partnership or marriage.\u00a0The law is changing in 2019 to extend civil partnerships to mixed sex couples and\u00a0they will benefit from the same tax breaks as same sex civil partners and married couples.<\/p>\n<h4><strong>3. Tax\u00a0advantages\u00a0of civil partnership and marriage<\/strong><\/h4>\n<ul>\n<li>You can transfer some of your unused income tax personal allowance to your civil partner or spouse<\/li>\n<li>Gifts to each other are free of capital gains tax (CGT)<\/li>\n<li>Gifts to each other are free of\u00a0inheritance tax (IHT)<\/li>\n<li>You can carry over your civil partner&#8217;s or spouse&#8217;s unused IHT tax free allowance<\/li>\n<\/ul>\n<h4><strong>4. Income tax<\/strong><\/h4>\n<p>Transfer \u00a31,190 of your personal allowance to your civil partner or spouse if they earn more than you and save \u00a3238 tax (tax year 2018\/2019). See this <em><a href=\"https:\/\/www.gov.uk\/apply-marriage-allowance\" target=\"_blank\">guide<\/a><\/em>\u00a0to how to apply, including backdating.<\/p>\n<h4><b>5.\u00a0CGT<\/b><\/h4>\n<p>Civil partners and married couples can gift their assets to each other free of CGT.\u00a0A gift of assets to the civil partner\/spouse who pays a lower rate of tax will mean they pay less tax on income from the asset, and less CGT if they dispose of the asset. Or transfer assets into joint names and you can both\u00a0make use of your tax free exemption which in\u00a02018\/2019 is \u00a311700.<\/p>\n<h4><b>6.\u00a0IHT<\/b><\/h4>\n<p>The threshold is \u00a3325,000, the\u00a0standard tax rate is 40 percent. Leave your estate to your civil partner\/spouse tax free and they can carry over your unused IHT tax free allowance and save IHT on \u00a3650,000 of their estate.<\/p>\n<h4><strong>7. IHT\u00a0on home left to the children\u00a0(inc adopted, foster or stepchildren) or grandchildren<\/strong><\/h4>\n<p>The threshold rises to \u00a3450,000 and a further \u00a325,000 will be added each year until 2020. This means the combined carry over\u00a0is \u00a3900,000 and increases each year until it reaches \u00a31m\u00a0in 2020. But if your estate is worth more than \u00a32m\u00a0it&#8217;s less beneficial.<\/p>\n<h4><b>8. Are there any\u00a0CGT downsides to civil partnership or marriage?<\/b><\/h4>\n<p>Yes there can be if you own a property each. In the case of cohabitees each property can be a principle residence\u00a0and so exempt. But if you enter into a civil partnership or get married only one property counts as a main residence. There are strict time limits for avoiding\u00a0CGT on the other property so make sure you don&#8217;t miss out.<\/p>\n<h4><strong>9.\u00a0Do I need a Will?<\/strong><\/h4>\n<p>An expert\u00a0solicitor can help you reduce IHT or avoid it altogether. See my recent blog\u00a0<em><a href=\"https:\/\/www.just-family-law.com\/blog\/index.php\/2018\/10\/16\/do-i-need-a-will\/\" target=\"_blank\">Do I Need A Will? Here&#8217;s One Very Good Reason.<\/a><\/em><\/p>\n<h4><strong>10.\u00a0<\/strong><strong>Tax advantages of civil partnership and marriage<\/strong><\/h4>\n<p>Contact expert Wills solicitor, Karen Layland, on\u00a001202 798199 or by email\u00a0<em><a href=\"mailto:karenlayland@just-family-law.com\" target=\"_blank\">karenlayland@just-family-law.com<\/a><\/em>\u00a0\u00a0for\u00a0<strong>free<\/strong>\u00a0<strong>advice<\/strong>\u00a0on the topics raised in \u201cTax Advantages of Civil Partnership and Marriage\u201d. In this 20 minute session we will review your situation and how you can achieve your objectives.<\/p>\n<blockquote><p><a href=\"https:\/\/www.just-family-law.com\/about-us\" target=\"_blank\" rel=\"noopener\">JUST FAMILY LAW<\/a>\u00a0are specialist divorce and family law solicitors offering\u00a0<a href=\"https:\/\/www.just-family-law.com\/blog\/index.php\/2017\/06\/02\/pay-as-you-go-divorce-family-law-costs\/\" target=\"_blank\" rel=\"noopener\">personalised legal solutions<\/a>.\u00a0We offer\u00a0<a href=\"https:\/\/www.just-family-law.com\/blog\/index.php\/2017\/11\/29\/collaborative-law-uk\/\" target=\"_blank\" rel=\"noopener\">collaborative law<\/a>\u00a0which is especially relevant in providing\u00a0solutions tailored to your family\u2019s needs. This includes same sex couples and their families. Visit our website\u00a0<a href=\"https:\/\/www.just-family-law.com\/\" target=\"_blank\" rel=\"noopener\">just-family-law.com<\/a>\u00a0The topics covered in this blog post are complex and are provided for general guidance only. Therefore if any of the circumstances mentioned in this blog have application to you, seek expert legal advice.<\/p><\/blockquote>\n<p>image Couple Working at Home by Unsplash on <a href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Couple_working_at_home_(Unsplash).jpg\" target=\"_blank\"><em>Wikimedia<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>1. Tax advantages of civil partnership and marriage Did you know there are tax advantages to being in a civil partnership or marriage? This blog looks at the savings you can make on income tax, capital gains tax and inheritance tax.\u00a0 2. &#8220;Common Law Marriage&#8221; does not exist If you&#8217;re living together you don&#8217;t have [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[584],"tags":[211,427,10,401,428,212,213,382,429,405],"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2032"}],"collection":[{"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=2032"}],"version-history":[{"count":73,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2032\/revisions"}],"predecessor-version":[{"id":4165,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2032\/revisions\/4165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/2100"}],"wp:attachment":[{"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=2032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=2032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.just-family-law.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=2032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}