The Financial Benefits of Marriage in the UK
What Every Couple Should Know
The Financial Benefits of Marriage in the UK
Many couples wonder whether marriage offers financial benefits in the UK. While love is almost always the reason people choose to marry, marriage and civil partnership can also provide legal, tax and financial advantages worth understanding.
I’ve met hundreds of wonderful wedding couples. Some had known each other for just a few weeks, while others had known each other for decades before deciding to marry. Every story is different, but they had one thing in common. They were getting married because they were deeply committed to each other. That said, it can be worth exploring the benefits of marriage or a civil partnership with an independent financial adviser, tax or legal professional.
I’m a wedding planner, not a financial advisor. This blog isn’t intended to provide financial advice or tell anyone whether marriage is right for them. It simply highlights the potential financial and legal benefits of marriage that you may want to explore further.
Marriage Allowance
If you’re married or in a civil partnership, you may be able to transfer part of your Personal Allowance to your spouse or civil partner if you meet the eligibility criteria. This can reduce the amount of tax your household pays.
If you haven’t claimed before, you may also be able to backdate a claim for up to four tax years.
Further information on this potential financial benefit of marriage is available from the Government’s Marriage Allowance guidance. https://www.gov.uk/marriage-allowance
Inheritance Tax
Marriage and civil partnership can also affect how assets are passed on after death.
For example, assets left to a husband, wife, or civil partner are generally exempt from Inheritance Tax. Additionally, any unused Inheritance Tax allowance can be transferred to the surviving spouse or civil partner, subject to the relevant rules. https://www.gov.uk/inheritance-tax
This is a complex area, so professional advice is always worthwhile if you have significant assets or want to plan ahead.
Savings and Investments
Married couples and civil partners may also benefit from rules that allow certain assets to be transferred between them without triggering Capital Gains Tax. Depending on your circumstances, this can be useful when planning investments or managing your family finances.
Martin Lewis has written a very readable overview of some of the financial benefits of being married that couples may want to explore further.
Research into Marriage Benefits
Interestingly, the Government’s recent consultation on proposed reforms to wedding laws in England and Wales also highlighted wider research into marriage.
Among the studies referenced are findings suggesting that married couples are, on average, less likely to die prematurely than the wider population. Other research found that married people reported higher average life satisfaction compared to their unmarried counterparts.
Of course, research like this can only look at broad trends. Every relationship is unique, and we all know that marriage isn’t a guarantee of happiness. Nevertheless, it’s interesting that some studies on the benefits of marriage point to outcomes beyond finances. You can read more about the research findings here.
The Legal Benefits Of Marriage
Marriage and civil partnership can also affect several other areas, depending on your personal circumstances. If any of the following are relevant to you, independent professional advice will help you to understand how the rules apply.
- Next of kin – Marriage may affect how organisations recognise your spouse or civil partner in certain situations. It’s worth understanding what this means and ensuring your wishes are properly documented.
- Pensions – Some workplace and private pension schemes offer benefits for spouses or civil partners. Every scheme is different, and your pension provider would advise.
- Bereavement support – Financial support or benefits may be available to surviving spouses or civil partners in certain circumstances. Eligibility varies, so professional advice can help you understand the legalities.
- Making important decisions – If a husband, wife, or civil partner becomes seriously ill and is unable to make decisions for themselves, a solicitor or legal adviser can explain possible legal arrangements that may be appropriate.
Grow old with me. The best is yet to be.
A final thought
For most of us, we don’t plan our wedding as a safety net in case life takes an unexpected turn. Nonetheless, marriage can provide some legal protection and financial security. Understanding more about how this could apply to them can help couples feel better informed about their future.
Ultimately, marriage should be a decision based on love, trust, and a lifetime commitment to one another. Any financial or legal benefits of marriage are additional advantages that may help couples look after each other along the way.
If you’d like to explore this topic further, it’s well worth reading the official Government guidance (https://www.gov.uk/)
A qualified financial or legal professional can explain how the rules apply to your own specific circumstances.
Thank you
Thank you to our wonderful couples and photographers for sharing their wedding photographs with us, including Tiree Dawson, Jo Greenfield, Sage Green Photography, Jenna Carpenter and Rachael Joyce.
"The secret of a happy marriage is findng the right person"
Next steps
If you’d like to know more about marrying in the Lake District, contact the Westmorland and Furness Registrar team. We’d love to help you plan your wedding at Cote How – you can get in touch using the link below:
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