IT IS EITHER LIKE A BOX OF CHOCOLATES , OR A BED OF ROSES , BUT HOWEVER YOU PREFER TO DESCRIBE LIFE , ONE THING ’ S FOR CERTAIN – WE SHOULD EXPECT THE UNEXPECTED . NO MATTER WHAT STAGE OF LIFE YOU ’ RE AT , THERE IS ALWAYS SOME PLANNING YOU CAN DO . WE ’ VE STARTED AT STAGE ONE – MARRIAGE . HERE ’ S A FEW THINGS TO HELP YOU ON THE WAY .
FINANCE
LIFE IS LIKE AN ACCOUNTANCY CYCLE
BY KEVIN THORNBY , TAX MANAGER AT WILKINS KENNEDY
IT IS EITHER LIKE A BOX OF CHOCOLATES , OR A BED OF ROSES , BUT HOWEVER YOU PREFER TO DESCRIBE LIFE , ONE THING ’ S FOR CERTAIN – WE SHOULD EXPECT THE UNEXPECTED . NO MATTER WHAT STAGE OF LIFE YOU ’ RE AT , THERE IS ALWAYS SOME PLANNING YOU CAN DO . WE ’ VE STARTED AT STAGE ONE – MARRIAGE . HERE ’ S A FEW THINGS TO HELP YOU ON THE WAY .
GETTING MARRIED
When the time is right to tie the knot , you might just find the taxman has left a gift of his own in the pile of wedding presents . If you are married or in a civil partnership and if one of you earns less than the £ 11,850 earnings threshold , you are able to transfer a proportion of your personal allowance between you . The caveat is that the other who is transferring the allowance must be a 20 per cent taxpayer – higher rate earners are exempt .
If you were born before 6th April 1935 , you cannot claim marriage allowance – but you will be entitled to married couple ’ s allowance , which could give you a reduction on your tax bill of up to £ 869 .
BUYING A HOUSE OR PURCHASING A SECOND HOME
If you decide to purchase a property together , you might come across a few scenarios . If you purchase your first property together , and neither of you have purchased property before , you will be eligible for SDLT relief . The government introduced legislation during the last autumn budget that excluded all first time buyers from paying SDLT on properties up to £ 300,000 and then just five per cent up to the value of £ 500,000 .
What if one of you already owns a property and you want to keep it , but you also want to purchase a joint property together ? In that instance , you would pay the higher rate of SDLT on the new property purchase . This will be made up of the standard SDLT payment , plus a three per cent surcharge , which applies to all second homes . This includes any property purchased abroad , or where there is a shared interest in property , for example if it is held in trust . If you sell the property and purchase another , as long as it is replacing your main residence , you would just pay the standard rate of SDLT .
TRANSFERRING ASSETS
If you choose to dispose of assets and you live with your spouse or civil partner , you can transfer assets between you free from Capital Gains Tax ( CGT ). If you are separated , or you did not live with your civil partner or spouse at all in the tax year , then you are excluded from CGT relief . If the spouse or civil partner then choose to sell the asset , they will have to pay tax on any gain at the point of disposal .
The receiving partner will not have to pay acquisitions tax either , as the transfer will be treated as a gift . It might also be worth considering other reliefs such as business property relief or Entrepreneurs ’ Relief . Every situation is different and we ’ d recommend seeking advice from those in the know . Contact Wilkins Kennedy ’ s offices in Ashford , Canterbury , Maidstone , Orpington and Sandwich for more information .
Local offices :
Ashford : 01233 629 255 / Canterbury : 01227 454 861 Maidstone : 01622 690 666 / Orpington : 01689 827 505 Sandwich : 01304 249 997
enquiries @ wilkinskennedy . com www . wilkinskennedy . com
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