“‘For richer or poorer? Advising cohabiting couples”

Jun 9, 2022 | Tax

The reasons cohabitors give for not marrying is the cost of weddings and divorces, especially second-time-arounders who’ve been scarred by the latter.  If, to quote Fleetwood Mac ‘shacking up is all you want to do’, be aware that if you there are legal and financial implications to going your own way (Rumours, 1977). Inheritance tax is payable if one inherits from the other; you’re not legally next of kin so need to ensure wills and powers of attorney are buttoned up; pension schemes won’t pay spouses on death if there’s no official spouse; and it rarely helps to keep your finances to yourself and not discuss them. If you’re worried about expensive weddings, just go to a register office and have a party (or holiday) afterwards. I’d say.

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“HMRC scraps plans to tax pensions after death”

“HMRC scraps plans to tax pensions after death”

A couple of other Statement Highlights (in my world, anyway). A welcome ‘nothing happened’ on the treatment of pensions on death. They were never going to be liable to IHT (too complicated with trusts and trust law) but there was talk of making them income-taxable on the recipients at whatever age you die.

“Raising IHT threshold could cost government £6bn”

“Raising IHT threshold could cost government £6bn”

Well, the lesson of this week in politics must be to expect the unexpected. Or, alternative interpretation, to expect more of the same. The speculation on the future of Inheritance Tax has switched from abolition to a rise in the amount of wealth you can have before the 40% payment hits.