Tax Saving for Married Couples
Essential advice if you’re married or in a civil partnership
Whether you're married or in a civil partnership, your relationship offers more than emotional support—it opens the door to powerful financial advantages. With HMRC intensifying its scrutiny of tax-avoidance schemes, it’s never been more important to ensure your tax strategies are not only effective but fully compliant.
This comprehensive guide is your roadmap to smarter, legally sound tax planning. It’s packed with actionable insights and proven techniques that help couples reduce their tax liabilities across income tax, capital gains and inheritance tax—while staying firmly within HMRC guidelines.
Discover how to make the most of your partnership with strategies that reflect the realities of modern relationships and business structures:
- Independent taxation benefits - Learn how the shift to independent taxation in 1990 changed the game for couples—and how you can use it to your advantage today
- Business income splitting - If you run a business together, find out how to allocate income between partners to reduce both personal tax and National Insurance contributions. This section includes examples tailored to sole traders, partnerships and limited companies
- Uneven earnings? Maximise your savings - For couples with unequal incomes, explore how transferring unearned income—such as dividends or rental profits—to the lower-earning partner can significantly reduce your overall tax bill
- Capital gains tax: Asset transfers made clear - Understand the rules around transferring assets between partners, including how to avoid triggering unnecessary CGT charges and how to plan for future disposals
- Separation and divorce: Tax implications you need to know - If you're navigating a separation, this guide breaks down the latest capital gains tax rules affecting asset division, helping you make informed, fair decisions during a difficult time
Estate and inheritance planning - Learn how to structure your estate to minimise inheritance tax, protect your legacy, and ensure your loved ones benefit from your careful planning
| Type of product | |
|---|---|
| Identifier (EAN / ISSN / Action Code) | 9781911744429 |
| Availability | In stock |
| Publisher | Lefebvre UK |
| Publication Date | Aug 15, 2025 |
1. General tax issues for married couples and civil partners
1.1. Who counts as married or in a civil partnership for tax purposes?
1.2. Does marriage affect all taxes equally?
1.3. Does HMRC have special rules for common law spouses or partners?
1.4. How are transactions between spouses/civil partners treated for tax purposes?
2.1. Can I split business income with my spouse/civil partner to reduce tax on profits?
2.2. Can all business income be split?
2.4. In what circumstances can I pay a spouse/civil partner as an employee?
2.5. Can I pay my spouse/civil partner below the minimum wage?
2.6. Can I pay my spouse for ad hoc work?
2.7. If I employ my spouse/civil partner and provide benefits in kind how are they taxed?
2.8. Is there an advantage to paying my spouse as a freelance worker?
3.1. I’m a sole trader; can I create a partnership with my spouse/civil partner?
3.2. How do I create a partnership?
3.3. How does HMRC view business partnerships between spouses/civil partners?
3.4. In what circumstances can HMRC attack a tax-saving partnership?
4.1. Does my company have to pay the national minimum/living wage to my spouse/civil partner?
4.2. How much can my spouse/civil partner be paid for being a director?
4.3. How does paying my spouse/civil partner from my company save tax?
4.4. Can I give some of my shares to my spouse/civil partner to improve tax efficiency?
4.5. Can my company pay different rates of dividend to my spouse/civil partner?
4.6. What are the pros and cons of dividend waivers?
4.7. What are the pros and cons of creating different classes of share?
5. Other tax planning for business-related income
5.1. When is it possible to provide benefits in kind to a spouse/civil partner?
5.3. Are some benefits more tax efficient than others?
5.4. Are there circumstances where a benefit in kind is not tax or NI efficient?
6. Unearned income and tax reliefs and allowances
6.1. What types of unearned income can be split and how should it be done?
6.2. What’s the special rule for taxing joint income for married couples and civil partners?
6.3. Does the 50% rule apply in every situation?
6.6. How can I change or reverse an election?
6.7. How might tax allowances and reliefs be used for tax planning?
6.8. What is the marriage allowance and how can I claim it?
7.2. Can I reduce CGT using my spouse/civil partner’s CGT losses?
7.3. How can intra-spouse/civil partner transactions be used to avoid the “bed and breakfast rules”?
7.4. How does private residence relief work for married couples and civil partners?
7.6. Can a transfer of a share of the family home by a separated spouse ever be exempt from CGT?
8.1. What are the general rules for transfers between individuals for IHT purposes?
8.3. What’s the IHT position if a couple separate or divorce?
8.4. What are IHT transferrable nil rate bands?
8.5. Is there any IHT planning possible with TNRBs?
9. Stamp duty land tax, land and buildings transaction tax and land transaction tax
9.1. Are transfers of land and buildings between spouses/civil partners liable to SDLT etc.?
9.2. In what circumstances does the exemption apply?
10.1. Can I transfer income-producing assets to my children to save tax?
10.2. What’s the tax position if my child makes a capital gain from an asset I gave them?
10.3. What’s the IHT position on gifts to my minor child?
11.1. Appendix 1 - UK tax rates and rate bands
11.2. Appendix 2 - PAYE tax and NI rules for casual work
11.3. Appendix 3 - Partnership Act 1890 - sections 1-3
11.4. Appendix 4 - Tax and NI-free benefits in kind and employment expenses
11.5. Appendix 5 - Assets within the scope of capital gains tax