Financial planning for couples: Your relationship and money
Financial strain is all too often a source of stress in a relationship. In a marriage or civil partnership, there are several yearly allowances to make the household more tax efficient. In most cases, the ability for partners to easily transfer assets between themselves gives couples substantial control over their finances and can relieve financial strain by increasing a household’s tax efficiency.
Although marginal income tax bands were left unchanged in the Autumn Budget, many could benefit from the decrease in their tax liability by setting up their income to originate from earned income, dividends, savings income, and capital gains.

What is marriage allowance?
Marriage allowance is particularly useful when one partner has little or no income.
A person can transfer 10% of their personal allowance for 2024/25 to their spouse or civil partner. The transferable amount is £1,260 (rounded up from 10% of 12,570 personal allowance)
However, one can only transfer their personal allowance to someone who is a basic rate taxpayer (income less than £50,270). Which represents a potential tax saving of £252 (20% of £1,260)
How can you take advantage of couples allowances?
Each person has yearly allowances for various types of income including savings and dividend income, as well as realising capital gains. When two people are married or in a civil partnership, they can take advantage of their allowances by transferring assets between themselves.
- Personal savings income allowance: £1,000 (Basic) £500 (Higher) £0 (Additional)
- Dividend allowance: £500
- Capital Gains Tax exception: £3,000
How the rise in Capital Gains Tax means more tax savings for couples
As the main rates of Capital Gains Tax were increased in 2024’s Autumn Budget from 10% and 20% to 18% and 24% respectively, making full use of your Capital Gains Tax allowance has become even more important when mitigating tax liability. As a result, spreading capital gains over several years and between partners can result in substantial tax savings especially if one or both partners are higher or additional rate taxpayers.
Cases
When both partners are basic rate taxpayers taking full use of your allowances could result in a tax saving of £783.75.
Although the potential tax savings are even greater when one partner is a higher or additional rate taxpayer.
Fully utilising the personal savings income allowance, dividend allowance, and Capital Gains Tax exception can result in a tax saving of £1,288.75 for higher rate taxpayers and £1,366.75 for additional rate taxpayers.
What to do if you need financial advice?
Although specific tax advice is beyond the scope of basic financial advising, a financial advisor can direct you to the specific information you need to achieve your goals.
Keeping you informed of changes to allowances and exceptions is one of the many ways a financial advisor can help reduce your tax bill legally and guide a long-term view for retirement planning.
If you are looking for tailored financial advice then please feel free to reach out to an adviser:
Email us at info@thepennygroup.co.uk or give us a call on 0207 061 2345
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Approved by The Openwork Partnership on 13/03/2025
Jack Fernandez
Client Service Team Associate at The Penny Group.
