’Til death us do part

Stuart Aikman and Paul Garwood consider the effect of marital status on IHT planning for cohabiting couples

Cohabiting couples continue to face harsh tax penalties despite a recent Law Commission report urging parity with their married counterparts.

The tax system recognises marriage and civil partnerships and often deals with the parties in such a relationship differently from other individuals, including cohabiters.It generally ignores the cohabitation lifestyle choice with only a few exceptions, notably when it comes to considering total household income for tax credits.

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