5 minute read
Football legend David Beckham and former Spice Girl turned fashion entrepreneur Victoria Beckham have built a wealth empire. Central to that is a long-term partnership that brings their finances, decisions, and ambitions under one structure.
That is what marriage can do.
It ties your financial lives together. It influences how you are taxed, how assets are owned, and how wealth moves between you and eventually to the next generation.
But your marriage doesn’t need to be a global brand like the Beckham’s to risk being significantly affected by tax and inheritance planning.
How marriage could affect your tax bill
One of the most immediate ways marriage can affect you is through tax.
In the UK, couples may be able to reduce their tax bill through the marriage allowance, which can lower tax by up to £252 per year, according to the UK Government. This allows one partner to transfer a portion of their personal allowance to the other.
This works best where one partner earns below the personal allowance and the other pays basic rate tax. You need to claim it rather than receiving it automatically.
If you have not claimed it before, you may also be able to backdate your claim by up to four tax years. In practice, that could mean a total saving of up to £1,260, depending on your situation.
You can check your eligibility using the Marriage Allowance calculator from HM Revenue and Customs, which gives a quick indication based on your income.
Marriage can also make it easier to organise your finances more efficiently over time. Looking at income, savings and investments across both of you, rather than individually, can help ensure you are making the most of the allowances available.
How marriage can reduce inheritance tax over time
The bigger financial impact of marriage often comes when you look at what happens to your wealth when you want to pass it on.
In the UK, wealth transfers between spouses are generally exempt from inheritance tax (IHT). This means you can pass assets to each other without triggering an IHT charge, both during your lifetime and on death.
You may also be able to combine your inheritance tax allowances. This means a couple who are married or in a civil partnership may be able to pass on up to £1 million without inheritance tax, though this depends on specific conditions being met — including a main residence being passed to direct descendants and the combined estate remaining below certain thresholds. The rules are complex and professional advice is recommended.
Given that inheritance tax is charged at 40 percent above the threshold, this can make a significant difference to how much your family ultimately inherits.
This gives you more flexibility. You can prioritise your partner first while still planning ahead for children or other beneficiaries, rather than being forced into decisions early.
Making smarter financial decisions as a married couple
Marriage can also change how you approach money day-to-day.
Instead of thinking in terms of “mine” and “yours”, you may start to plan more deliberately as a couple. That does not mean everything has to be combined, but it does mean your decisions are more connected.
For example, you might decide how to balance long-term and short-term goals between you. One of you may prioritise building pension wealth, while the other keeps more accessible savings for flexibility.
You might also think about timing. Planning when each of you retires, or how your income is structured over time, can make a difference to how much tax you pay, and ultimately your lifestyle in retirement.
This is where the real value of marriage often shows up. It is not just about individual tax savings. It is about how your financial choices work together over time.
What you might want to review before or after marriage
If you are married, or planning to get married, it is worth stepping back and reviewing how your finances are set up.
The Beckhams’ wedding reportedly cost around £750,000 in 1999, a reminder of how much focus is invested in the day itself. For most couples, the numbers are far lower, with the average UK wedding costing more than £20,000. But while the dress, the DJ, and the décor often dominate priorities, it is the longer term financial structure that comes with marriage that can have a far greater impact on your life.
This is a good moment to check how your finances could actually work together.
Start with the basics. Are you making full use of the allowances available to you as a couple, or are your finances still set up as two completely separate arrangements? Consider whether a more joined-up approach could make a real difference.
Then look at ownership. If one of you earns more than the other, does it still make sense for assets and investments to sit where they are, or could small changes to your savings approach make that money work more efficiently?
It is also worth revisiting the details that are easy to overlook. Pension nominations, life cover and any estate planning arrangements are often set up at different points in time and may not reflect your current situation.
If you already have a Will, it will be automatically revoked when you marry. The only exception is if it was made in contemplation of that marriage, according to the UK Government. That means your previous wishes may no longer apply and you will effectively have no valid will until a new one is made. This could mean your estate passes under the intestacy rules rather than according to your wishes, so it is important to put a new will in place as soon as possible after the wedding.
None of this needs to be complicated. You do not need to build a global brand like the Beckhams for these tax and inheritance rules to apply. Taking a clear, joined up approach can help you make better use of allowances, structure assets more efficiently and pass on more of your wealth over time.
If you would like to check your setup, speaking to an independent financial adviser from Flying Colours Advice can help you take a more joined-up view of your finances and create a clear, practical plan. You can arrange a time to talk here: https://fcadvice.co.uk/book-an-appointment/
Please note:
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term (minimum of 5 years) and should fit in with your overall risk profile and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing. Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Planning horizons are illustrative and will vary based on individual health, circumstances, and life expectancy.
Both images used in this article were found via Wikimedia Commons. Featured image from Soccer Aid for Unicef. Secondary image from Mike Fanshawe. Copyright license here.