On the other hand, the marriage rate is sluggish. The number of weddings decreased by 36.6% from 1989 to 2019. Marriage rates fell to a record low in 2020 as lockdown measures closed wedding halls and registration offices.
Family structures have changed dramatically in recent decades, but inheritance tax exemptions remain a thing of the past.
One of the most generous tax credits for married couples and civil partners is the spousal property transfer exemption, first introduced in 1975. This has saved couples and civil partners £2.6 billion in combined 2019-2020, the most recent year. What data do you have?
Cohabitants do not benefit from this tax break, regardless of whether they are romantically involved.
“This often forces people to get married or enter into private partnerships when they were living happily as they were,” said Ian Diall of financial planning firm Evelyn Partners. Often this happens just before death or while trying to cope with a terminal illness.”
Another problem faces single or married people without children. In 2017, the government introduced a housing zero rate zone that gives homeowners an extra £175,000. But it only benefits those who pass the home to direct descendants.
Mr Diall said: “Therefore, if you do not have children, stepchildren or adopted children, you will not be able to use this benefit. This benefit cannot be used to transfer assets to nephews or nieces or even your partner’s children if they are not stepchildren or adopted children. you can’t.”
“Why can’t I tell my nieces and nephews more?”
Tony Mott, 73, says the inheritance tax discriminates against single homeowners like him.
A retired civil servant, Mr Mott has worked his whole life because he can afford a semi-detached house in Hampshire. However, he now faces a huge inheritance tax claim of £100,000 on his property due to soaring property prices in the South East.
If he were married and had children, this would be much less, and possibly even non-existent.
