Family Solicitors Ipswich – Marriage tax break plans to be published ‘shortly’
Within the UK couples who are married or in a civil partnership can enjoy various tax benefits compared to those who are only in a cohabiting relationship. One example is that spouses or civil partners can potentially, given the correct set of circumstances, transfer the ownership of assets to each other without incurring a capital gains tax liability on any potential gain in value. Prime Minister David Cameron has announced today that plans for further tax benefits for married couples are likely to be published shortly. Under plans currently being considered, husbands and wives who do not work and pay no income tax would be able to transfer part of their annual tax free allowance to their spouse. This is so long as their spouse earns less than the higher rate of tax. The higher rate of tax is currently paid by people earning more than £41,451 per annum. These proposals are part of the Conservative manifesto made in 2010 , with some Conservatives claiming that these proposals would make more than 4 million married couples and civil partners £150 a year better off.
However, there have been no clear details as yet to the amount of transferrable allowance which would be allowed and there are many critics of the plans, most notably Deputy Prime Minister Nick Clegg who described these proposals as “patronising drivel that belong in the Edwardian age”. More coverage of this story can be found on the BBC news website by clicking here. We shall all have to watch this space to see if these new proposals will be given the go ahead.