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View all peoplePublished by Jo White on 21 October 2026
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Over the summer, the actor Ricky Gervais was reported as saying that he and his partner of over 40 years will marry to save inheritance tax.
The decision attracted wide press coverage and surprised many who know the couple. Whilst tax isn’t usually at the centre of decisions to marry, it could make a significant difference to the long-term financial future for your partner and family if one of you were to pass away.
Cohabiting couples should be aware of the rules, to allow them to make an informed decision as to whether marriage may also benefit them and their family in the future vs remaining unmarried.
Couples in a Civil Partnership also receive the same inheritance tax benefits as a married couple.
Inheritance tax is a tax on a person’s estate which includes property, possessions and money. The first £325,000 – the nil-rate band, is exempt with everything over this charged at 40%. There is an additional allowance of £175,000 which may apply if your main residence is left to direct decedents i.e. your children or grandchildren and your estate is worth less than £2 million.
If you are married then everything left to your spouse has a 100% spousal exemption, regardless of value. When the second spouse dies this threshold can potentially be doubled to £650,000 which combined with the additional allowance means a married couple could leave a tax-free estate of up to £1m to their children or grandchildren.
Couples who are cohabiting are treated differently. If their partner dies, then they may not automatically receive anything from the estate unless there is a Will which names them as a beneficiary. Further, any transfers to the survivor would be subject to IHT where the value being transferred is greater than their available nil-rate band. This may mean they have to sell assets to release funds to pay Inheritance tax unless other savings or investments are available.
Often the last thing people want at the time of bereavement is the upheaval of having to sell-up and move after the loss of their partner.
Changes to Business Property Relief and Agricultural Property Relief and forthcoming changes to how pensions are taxed from April 2027 mean many people will have a higher IHT liability on their estate. Understanding the tax rules will allow you and your loved ones to make an informed decision about what is right for your future.
If you are unsure about your IHT position, get in touch with our team.
Do unmarried couples pay more inheritance tax than married couples?They can. Married couples and civil partners benefit from the inheritance tax spouse exemption, which generally allows assets to pass between them free of inheritance tax. Unmarried couples do not qualify for this exemption, so tax may be payable on assets inherited above the available allowances.
Can getting married reduce inheritance tax?Marriage can reduce inheritance tax because assets left to a spouse are generally exempt from inheritance tax. Any unused nil-rate band and, where eligible, residence nil-rate band can also potentially be transferred to the surviving spouse, helping reduce tax on the estate when they die.
What happens if my unmarried partner dies without a Will?An unmarried partner does not automatically inherit under the rules of intestacy in England and Wales. If you want your partner to inherit your assets, making a valid Will is important. However, leaving assets to an unmarried partner may still result in an inheritance tax liability.
Can unmarried couples inherit each other's homes tax-free?Not automatically. An unmarried partner may inherit a share of a home under a Will, but the transfer does not benefit from the inheritance tax spouse exemption. The residence nil-rate band may be available if a qualifying home is passed to direct descendants, but this is subject to specific conditions.
How much inheritance tax can a married couple save?Married couples and civil partners can potentially pass on up to £1 million free of inheritance tax if both the standard nil-rate bands and residence nil-rate bands are available and the relevant conditions are met. The standard nil-rate band is £325,000 per person, with a residence nil-rate band of up to £175,000 per person.
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