Couples finances advice how to#

Bear in mind that the CGT exemption is being slashed in April 2024 to just £3,000 – you can find out what this might mean for you here. Couples who are married or in a civil partnership can transfer investments between one another tax free, which effectively doubles the CGT exemption to £12,000. If you’ve used up your ISA allowances, the CGT exemption lets you each realise tax-free investment gains of up to £6,000 in the 2023/24 tax year. If you both open an ISA, that’s a combined £40,000 that you could shield from income tax and capital gains tax (CGT) each year. ISAs, for example, let you each invest up to a maximum of £20,000 a year (2023/24) to benefit from tax-efficient income and growth. Tax isn’t the most romantic subject, but there are several tax planning opportunities that could help more of your money go towards your future. This will give your money the opportunity to grow over the long term, helping you reach your goals more quickly. That way, you won’t run the risk of your savings plummeting in value just before you need to access them.įor goals that are ten or more years away, you might want to consider investing at least some of your money in the stock market. If, for example, you want to move to a bigger property in three years’ time, then it probably makes sense to put this pot of money in a low-risk cash savings account. Having goals is important because it helps you decide how much money you need to save, and where to invest it. Agreeing one or two mutual goals will give you something concrete to work towards as a couple. It’s great to have individual goals in life, but you might find it easier to stay on track if you feel like you’re in it together. It can help you to set expectations, work through any issues, create a budgeting plan that suits both partners, and build a more solid financial plan. Talking about your finances may feel awkward, but it’s a really important way of maintaining a healthy relationship. Your habits and attitudes towards money could differ substantially, potentially leading to arguments further down the road. But if you haven’t had an open and honest conversation about your savings, spending, income and debt, you could be in for a nasty surprise.

It’s easy to assume you and your partner are on the same page when it comes to your finances.

Couples finances advice how to#

Whether you’ve been together for years or are embarking on a new relationship, here are four financial planning tips for couples.ĭownload: A guide to tax-efficient investingįind out how to invest more tax efficiently and reach your goals in our comprehensive guide

Planning your finances with your partner could help you build a more secure financial future.