Tax cuts and marriage - an unlikely couple?

It has to be said that I am a firm believer that marriage is a must for
couples. Hence, it is rather frustrating watching the UK marriage rates
slip. The Office for National Statistics stated that "by 2031, the
proportion of unmarried men will rise to 46% compared with 35% in 2003."

However, according to the national statistics,
the biggest drop in "all marriage" rates took place between 2000 and
2001. Bearing this in mind, one should take note that on 5th April 2000
the married couples allowance was abolished for all married couples
except for those where at least one partner was 65.

To clarify,
HMRC define the married couples allowance as, "reducing the amount of
income tax a married couple or civil partners have to pay. . . Married
couple’s allowance is restricted to give relief at a fixed rate of 10%.
This means that, unlike the personal allowance, married couple’s
allowance is not income you can receive without having to pay tax.
Instead, it reduces your tax bill by up to a set amount. This amount is
calculated as 10% of the amount of the allowance you are entitled to."

Perhaps,
one of the issues in getting married, lies in the area of financial
stability. Buying a house, providing for each other, kids, these are
all the financial hurdles newly married couples need to overcome. So
why then, has Brown punished married couples and abolished the
allowance? With rates rapidly decreasing in our society, why add petrol
to the flames?
Tax has always influenced human behaviour since its
introduction. Of course, I don't mean to say that couples marry solely
for fiscal reasons, but rather fiscal reasons may deter couples tying
the knot.

With a mortgage, general debts and hefty bills to pay, a minor tax break would be very welcome.
It
is true that some transactions between spouses such as transfers in
value under inheritance tax and assets under capital gains are exempt.
However, these transactions are rare relative to the number of couples
liable to income tax.

Financial difficulties of couples may also
play a part in the age of first marriages and divorce rates. In a
majority of cases individuals will prefer being single, but stable,
over marriage, therefore the average age of marrying will rise.

No wonder rather recently the front page read "Marriage rates plummet to record lows" . . . !

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