12th May 2015 at 3:23pm
Well it looks like marriage is certainly agreeing with Andy Murray. What a fantastic couple of weeks it’s been for him. His recent victory in Spain was his second on clay in as many weeks, having won the Munich Open the previous Sunday. And to beat the ‘King of clay’ Nadal in straight sets is a huge milestone for him, given his tournament win percentage on clay pre-marriage was 0%.
It appears even Andy is putting this change in form down to his recent nuptials, scribbling the words ‘Marriage works’ on a courtside camera.
Marriage can also be an advantage for Andy off the court too, with the tax perks and savings that can come with it.
The new tax year saw the Government deliver some new balls when it came to tax and marriage. Here are our MoneyPlus tips on some of the financial advantages of tying the knot.
Serving up an income tax break
6 April saw an online registration service launched for a new tax perk which could cut the tax bills of up to 4 million married couples, and 15,000 civil partnered couples. Now, part of any unused income tax personal allowance will be transferable from one spouse or civil partner to the other. But it’s not automatic and you have to claim it.
The transferable allowance means a spouse or civil partner who doesn’t pay tax can transfer up to £1,060 of their unused personal tax-free allowance to their spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax (i.e. they pay tax at 20%). You could end up £212 better off if you claim this.
The baseline for inheritance tax
The biggest tax saving with marriage and civil partnership is the inheritance tax exemption and the transferable nil rate band.
What these mean are big savings in tax if together you’re worth more than £650,000. What one spouse or civil partner leaves to the other is usually free of inheritance tax. And the way this tax is charged when the survivor passes away means the tax-free allowance could be £650,000 rather than the usual £325,000.
A top spin on ISAs
The Government also took a volley at ISAs, raising the limit to £15,240 for tax year 2015/16 and bringing in the new inheritable ISA allowance from 6 April 2015.
Now when someone dies the value of their ISAs at the date of their death will become an inheritable ‘enhanced’ ISA allowance for the surviving spouse or civil partner. For those couples who have planned their savings together, this means the tax benefits of saving last longer.
The perfect match
Well there we have it; it seems marriage can be convenient when it comes to your finances and your forehand smash.
With summer beckoning we hope Andy can transfer this current form on clay onto his more favoured grass and we see him crown this momentous year with another Wimbledon title – now thatwould be ace!
The information in this blog or any response to comments should not be regarded as financial advice. A personal pension is an investment. Its value can go up or down and may be worth less than you paid in. Laws and tax rules may change in the future. The information here is based on our understanding in May 2015