When thinking of my next post, in true Jo style I immediately went to food; Easter eggs, Hot Cross buns etc however, this easter was a little different for us so I’m not going to cover these. If you’re really intrigued though there is a lot of information out there on VAT of ‘Hot Cross Buns’ just give it a google.
Now onto the real topic – Weddings! Incase you didn’t notice from the heading my easter weekend was even more special as we spent it at the most amazing wedding. And in true Tax Geek style you can’t go to any event without assessing the tax implications so here are a few Wedding Tax Facts.
- Wedding Gifts! – There are special inheritance tax rules around wedding gifts that means wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child) are exempt.
- The Married Couple Allowance – this lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner – if they earn more than you. This reduces their tax by up to £250 in the tax year. To benefit as a couple, one of you must normally have an income below your Personal Allowance.
- Wedding Cake – Ok so I still managed to get food in here. VAT Notice 701/14 states Cakes including sponges, fruit cakes, meringues, commemorative cakes such as a wedding, anniversary or birthday cakes are all Zero Rated (Its a small win but a win none-the-less) additionally, non-edible cake decorations on a wedding cake if they are clearly for the cake can also be zero-rated.
- Inheritance Tax – Not always the nicest topic but transfers between husband, wife or civil partners are exempt and you also also inherit their unused allowance to allow you to pass on inheritance. Additionally for the last couple of years you have also been able to inherit your spouse or civil partners ISA allowance (this is the amount they have built up in their ISA) please note this is just the allowance and not necessarily the funds.
Hope you all had a lovely long weekend…