The comedian Ricky Gervais recently announced he was thinking of marrying his long-term partner of 44 years for tax reasons.
The Office creator and star, 65, who is reportedly worth more than £100m, has been with his partner, Jane Fallon, since 1982.
While he has often said the couple don’t see the point in marriage, with one reason being they don’t believe in God, there is a financial reason why getting hitched can make sense.
“Tax will be the reason I marry,” Gervais told Saga magazine. It might not be the most romantic reason to wed, but to many people it’s an increasingly logical one.
Couples who are married or in a civil partnership don’t have to worry about inheritance tax being applied to their estate after the first partner dies. Generally everything passes to the surviving spouse tax-free.
But for those who are unmarried, anything worth more than £325,000 could be liable for inheritance tax (IHT) of 40 per cent. In some cases, it can mean selling the family home if there is not enough cash in the estate to cover the bill.
“I have spent most of my professional career explaining to clients that there is no such thing as a ‘common law marriage’,” says Matthew Barnett, head of private client at law firm Edwin Coe.
“You can live together for a year, four years or 44 years and you do not simply acquire the same – or, in some cases, any – legal and tax protections as a married couple.”
For Justin Urquhart-Stewart, a financial services veteran who recently got married for the second time, marriage makes sense for many reasons. While it shows a couple is committed to one another, it also comes with some sensible tax advantages.
“Being married doesn’t mean you have to pool all your finances together, but it means you can financially plan what you want to be able to do, and you can achieve more as the two of you together married,” he says.
“Most people don’t get married because of tax alone. But it can be extremely dangerous not to be married if you own a home and have a sizeable estate that could be liable for IHT. At 40 per cent, it is a big whack. As far as I’m concerned, I pay reasonable taxes to the Treasury already.”
Justin, 71, was previously married for 40 years to Francesca, who died in 2019 soon after being diagnosed with a brain tumour.
“We had 40 very happy years together and then suddenly that stops. It’s taken away from you. What are you going to do?” says Justin. “You take a deep breath and start again. Francesca wanted me to live life to the fullest. I’ve been given a chance to restart.”
How inheritance tax works for couples
The government recently closed a consultation on potentially significant changes to the rights of cohabiting couples. This includes proposals around succession where somebody dies without a will.
However, the potential reforms are a long way off becoming law. They are also not intended to extend to IHT and, regardless of how far-reaching the reforms might eventually be, they would not make cohabitation equivalent to marriage.
In the meantime, for couples, being married can give them financial security that they will not have to deal with a potentially significant IHT bill after the death of their partner.
Barnett says his law firm has seen couples who have been perfectly happy living together for decades decide to marry or enter a civil partnership after receiving advice on what would happen financially if one of them died.
“It may not sound terribly romantic, but the consequences can be pretty substantial,” he says.
A married couple can pass on up to £1m to surviving children or grandchildren free of IHT. This is formed from the £325,000 nil-rate band, the amount everyone can pass on before IHT becomes due.
As well as this, homeowners who leave the family home to a direct descendant such as a child or grandchild get a further allowance of £175,000, called the residence nil-rate band.
When the first spouse dies, both these allowances are passed on to the surviving partner, and then the combined £1m allowances come in after their death.
Such planning is not available to an unmarried couple. In some cases, assets may even be taxed on both the first death and then again upon the death of the surviving partner, says Will Vine, a partner at Everys Solicitors.
He has seen increased interest in the tax protection of marriage in the past two years due to upcoming changes from April 2027 that will mean unspent pension funds are included in a person’s estate when calculating an IHT bill.
“This has prompted some couples to finally set a date after many years of deliberation. Others have viewed this a little less romantically and opted for a quick civil partnership, dispensing with as much tradition as possible. This was all about the inheritance tax.”
Nina Sperring, a partner at law firm Price Slater Gawne, said marrying shouldn’t be decided by tax alone, particularly in blended families where there are children involved.
She says: “If the estate passes outright to that spouse, then children from a previous relationship could inherit less than expected or, in some cases, nothing at all. That does not mean people should avoid marriage, but it does mean the tax benefits need to be considered alongside the family’s wider succession plans.”
Not so taxing times
Justin already knew Virginia, a journalist, and their relationship developed after the first Covid lockdown lifted in 2020. They married in May 2022 at St Bride’s church in the City of London, surrounded by close friends and family, including Justin’s daughter.
Justin, who retired a few years ago, now spends his time on archaeological digs, going to the theatre with Virginia and renovating his 17th century home in west London.
“I’ve been given another ticket. It has been a startling change in life. I bought a new house and it’s been a completely new beginning in every way. I’m now on the next stage of my life and don’t want to waste it,” he says.
Justin says his daughter was fully supportive of his second marriage and Virginia does not have children, which made the decision to marry easier.
“I’m now 71, so suddenly realising life’s ticking on a bit. These past four years of marriage have made me very happy. You each bring different things to the party and, also importantly, you don’t bring the taxman.”
Hence then, the article about we never wanted to get married now we re doing it to avoid an inheritance tax bill was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( We never wanted to get married – now we’re doing it to avoid an inheritance tax bill )
Also on site :
- Dolly Parton’s Final Message to Millions of Children Is Breaking Hearts After Her Death: ‘Promise Me’
- Kendra Scott’s Dainty Pumpkin Necklace Is a Festive Finishing Touch for Fall Outfits, and It’s Under $35
- Dolly Parton’s Musical Reach Stretched Beyond Country to Pop and Rock With Unexpected Covers and Collabs