Are you and your partner making the most of your combined resources?
When you’re building a life together, your finances naturally overlap – from income and savings to investments and the way you pay tax. Many of the tax benefits available to couples apply only if you’re married or in a civil partnership, so it’s especially important to understand the rules that apply to your specific situation.
A joined-up approach to financial planning unlocks tax benefits which are not always available to individuals who are single. From lowering your household tax bill to maximising your pensions and savings, there are clear gains in planning as a team.
This isn’t just about today’s finances. It’s about protecting your future, preparing for major life stages, and giving your family lasting financial security. Whether you’re buying a home, starting a family, planning for retirement or passing on wealth, smart tax planning can help you get there.
These 5 tax planning tips are a smart starting point to help you grow and manage your wealth together.
Maximising tax efficiency as a couple: Key takeaways
If you’re short on time, here are the key takeaways to help you start planning more effectively as a couple.
- Combine your allowances: Use the Marriage Allowance and consider managing income/assets through the lower‑earning partner.
- Cut your CGT bill: Share and stagger disposals to reduce Capital Gains Tax using both partners’ allowances.
- Boost pension savings smartly: Pension contributions for a lower‑earning partner can unlock valuable tax relief.
- Double up on ISAs: Utilise both ISA allowances to grow savings and investments tax‑free.
- Get advice together: A joined‑up strategy ensures better planning for tomorrow.
1. Combine your allowances
UK tax allowances are applied to individuals, but couples can often gain by planning together.
If one partner earns below the personal allowance (£12,570 in 2025/26), they may be able to transfer up to £1,260 of unused allowance to their spouse through the Marriage Allowance. This can reduce the higher earner’s tax bill by up to £252 per year.
Income-generating assets, such as savings or dividends, can also be held in the name of the lower earner to make better use of their allowances. In addition, each partner has a £20,000 annual ISA allowance. Using both means you can shelter up to £40,000 from tax each year.
2. Time and share asset disposals
Capital Gains Tax (CGT) can often be reduced when couples plan disposals together.
Assets can usually be transferred between spouses or civil partners without triggering a CGT bill. This allows couples to split ownership and make use of both individuals’ annual CGT exemptions, which stand at £3,000 each in 2025/26. You can read more in the government’s CGT guidance.
If you’re planning to sell assets, consider spreading disposals across multiple tax years to maximise your exemptions and reduce your total CGT liability.
3. Contribute to a lower-earning partner’s pension
Supporting a partner’s pension can strengthen your long-term financial security and lower your household tax bill.
Even without taxable income, individuals can receive basic-rate tax relief on personal pension contributions of up to £2,880 per year. This becomes £3,600 once tax relief is added. The rules are explained in more detail on MoneyHelper.
This strategy can also help balance retirement income between you, and make the most of your combined allowances. However, it’s easy to get this wrong and fall foul of HMRC rules. So, for personalised support, our pension planning services can help you decide how and where to contribute.
4. Use ISAs strategically
ISAs offer a flexible way to grow your wealth without paying tax on income or gains. But how you use them can be just as important as using the allowance itself.
You might choose to align your ISA choices with different goals or timeframes. For example, one partner could hold a cash ISA to support short-term savings, while the other invests in a stocks and shares ISA for longer-term growth. This can help you balance stability with opportunity across your household finances.
Lifetime ISAs may also be worth exploring if you’re saving for a first home or looking to supplement your retirement savings, as they offer a government bonus – though eligibility criteria and withdrawal restrictions apply.
Our investment planning and retirement planning services can help you decide how to make the most of your ISA options based on your goals, time horizon and risk profile.
5. Get joint financial advice
Planning together helps you align your financial goals and make informed decisions as a household.
A financial adviser can help you understand how tax, pensions and investments interact and ensure you’re making the most of the rules available to you as a couple. Whether you’re planning for retirement, property moves or inheritance, joined-up advice gives you clarity and confidence.
Explore our services for tax optimisation and estate planning to see how expert guidance can support your long-term goals.
Build your financial future together
Tax rules can be complicated. But as a couple, the opportunities for better outcomes are clear. With the right plan in place, you can reduce your household tax bill, grow your wealth more effectively, and build a confident future for your family.
Book a consultation with an adviser from Flying Colours Advice today to create a personalised financial plan that’s tailored to your goals, your household, and the stage of life you’re in.
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 age 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.