If you are a cohabiting couple in Swindon Capital Gains Tax will be greater due to the fact that you are not married. In fact a good way of avoiding capital gains tax is to get married, though make sure you have chosen the right partner.
Swindon Capital Gains Tax Avoidance.
The transfer of your investments or properties to a spouse is considered to be, a not for gain or not for loss in capital gains terms. So as a married couple in Swindon capital gains tax will be lower for you. The level of tax avoidance is significant, if you transfer half of your property to your spouse before selling the property, then as a couple resident in Swindon Capital Gains Tax exemption will double.
Another method of reducing or avoiding tax that results from being a married couple arrises if you pay higher rate tax, this can be lowered by transferring shares to your spouse if they don’t earn as much as you do.
Obviously the reverse occurs if you are divorcing but the no gain, no loss benefits lasts until the end of the tax year, after that the tax is calculated as normal.
There are 4 million couples cohabiting in the UK although this trend in recent years has been falling with the number of marriages increasing by about 3.5 %.
There is no explicit tax benefit for married couples, but there are definitely tax advantages if you are married. As a cohabitee you could miss out on thousands of pounds worth of enhancements in later life. These include state pension and other benefits and you could end up having significantly large tax liabilities if your partner dies.
Married Couples Tax Avoidance
An example of this are state bereavement benefits which is an allowance paid to widowed spouses and civil partners if you are cohabiting.
If you are married you are able to benefit from this the state bereavement benefit. This means that if your partner dies when you are over 45, but not yet drawing state pension you may be entitled to the bereavement allowance. This is paid for 52 weeks after the death of your partner. It is paid depending on the national insurance contributions involved, the maximum weekly payments is just over £31 rising to just over £100 if you are between 55 and the state pension age.