In late 2024, James Watt, co-founder of BrewDog and multi-millionaire, made headlines when it was reported that he’d decided to delay marrying reality TV star Georgia Toffolo to avoid missing out on tax relief.

According to news stories, Watt was advised that, having invested in Toffolo’s dog food business, Wild Pack, he’d need to wait three years before marrying his fiancée – or he could miss out on up to 30% tax relief.

HMRC rules mean that getting hitched to Toffolo would make him a “connected person”, causing him to lose tax relief from the Enterprise Investment Scheme he’d used to invest.

James Watt later took to Instagram to save his reputation. After calling out the Daily Mail, he added: “There’s no way I’d survive calling off a wedding to save £3,500 in tax…”

James Watt and false reporting aside, if you’re in a relationship, your financial affairs are important to you both. So, it’s crucial to be open and honest, share information, and plan your financial future together.

So, read on for three profitable reasons managing your money as a couple can help to benefit you both.

1. Decide on your financial plan together

Even if you and your partner have vastly different incomes, it’s useful to start by considering yourselves as equal when it comes to your financial plans. Starting out with the right mindset means tension is less likely to creep in to your conversation.

From buying a home together, choosing a car, and even deciding where you’ll go on your next holiday, key financial decisions affect you both.

While you may find that one of you usually takes the lead when making day-to-day decisions, such as paying bills or managing your household budget, this is often down to who has the time or is better at doing the sums.

However, when you’re thinking about your overall financial planning strategy, it’s better if you both take an equal part in the decision-making. This way, you’ll know you both agree on the plan.

2. Plan as a couple and save money

There are numerous advantages to planning your savings, investments, and pensions with your partner.

By working as a team, you can each benefit from tax incentives and allowances, including:

• Your annual ISA allowance – allows you to save money and take proceeds free from Income Tax or Capital Gains Tax (CGT). In the 2024/25 tax year, the ISA allowance is £20,000. So, as a couple, you can tax-efficiently save and invest up to £40,000.
• Capital Gains Tax – the 2024/25 annual exempt amount for CGT is £3,000. By holding investments in joint names, you could take up to £6,000 worth of gains on shares and other non-ISA investments before having to pay CGT.
• Pension contributions – in 2024/25, the limit on tax-efficient pension contributions is either £60,000 gross, or 100% of your earnings – whichever is lower. You receive tax relief at your marginal rate of tax, so it may make sense to maximise contributions for whichever of you is the higher earner. If one of you isn’t working, you can still contribute £2,880 into a pension each year and the government will top this up to £3,600 through basic-rate tax relief.
• Marriage Allowance – If you’re married or in a civil relationship, the Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife, or civil partner. This means by planning together, you could reduce your partner’s tax bill by up to £252 a year.

3. Collaborate to achieve your life goals

Planning for your financial future together means you’re both invested in the same outcome. With a clear understanding of your joint income and expenditure, you can work with your partner and plan to achieve your wider life goals.

No matter how you ultimately decide to spend your future or your money, it needs to work for you both. Discuss your goals and make plans together and you’re more likely to achieve the goals you’re both aiming for.

Get in touch

If you and your partner want to plan your finances in the most effective way, we can help. Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note

The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.