Braxted Park Estate Wedding Fair hosted by County Wedding Events
If you're newlyweds-to-be embarking on your wedding planning journey, pop along to...
Posted by Danielle Harvey on 10 August 2020
Here Zoe Bailey, director of Financial Planning at Tilney shares a few of the financial advantages to tying the knot:
1. Tax Benefits Launched five years ago, a perk for newlyweds is the tax marriage allowance. If one of you earns below the basic 20% rate income tax band and the other doesn't pay tax, the non-taxpayer can transfer (£1,250) or 10% of their personal tax-free allowance to their tax-paying spouse. This can save just over £230 each year by altering your tax code in a tax year, this can build up to a sizeable amount over time that can be saved towards your bigger financial goals in the future.
2. Think about your Pensions Again, if one of you is a higher-rate taxpayer and the other a basic-rate taxpayer, then the basic-rate taxpayer spouse can pay into
3. Property or Market Investments No longer do you have to worry about using up your personal ISA allowance each year. Once you're married, if you've reached your limit, you also have access to their allowance too if they have not used it already. Sometimes more importantly, as a married couple, you can now transfer/gift assets to each other without having to pay any Capital Gains Tax (CGT). Plus, you each have a Capital Gains Tax (CGT) free allowance each Tax Year, this year it is £12,300. This is the amount of profit you can make from an asset (including a second property) each tax year before any tax is payable.
4. Protect your Future Particularly in the current climate, should you or your spouse get into difficulty professionally or medically, marriage can provide some protection to ensure your family will remain financially secure if either one of you were suddenly unable to provide for a period of time. You can take out a specific policy such as Family Income Benefit protection, which will pay a tax-free monthly income should your spouse die. Other examples are Income protection cover, which pays a tax-free monthly income to you if you're unable to work due to a health condition or injury, and critical illness cover pays a lump sum or a regular tax free income to you if you are diagnosed with (and survive) a serious illness, or have to undergo certain complex surgical procedures. There are several options that can provide married couples with financial peace of mind should your spouse pass away, fall ill or need an extended period off work.
Braxted Park Estate Wedding Fair hosted by County Wedding Events
If you're newlyweds-to-be embarking on your wedding planning journey, pop along to...
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