Meg Saksida explains why it’s not always an obvious conclusion for UK tax purposes.
The institution of marriage or forming a civil partnership (CP) has been a highly desirable state in the UK. Historically and traditionally, being legally bound in matrimony was seen as a secure and safe environment to raise children. To this end, tax benefits were afforded to those that were in a legal partnership.
However, all that glitters is not always gold. Some of these so-called benefits can alternatively be a curse, depending on the specific facts of the couple.
Income tax implications
Income tax benefits include the married couple’s allowance (MCA) and the ability for one member of a basic-rate taxpaying couple to pass 10% of the personal allowance to the other spouse or civil partner.
The MCA, however, is only available if the
