The average cost of hosting a wedding is £24,000. Expensive isn’t it?
However, there are tax breaks that have something to do with weddings, which the taxman does not usually tell you directly. It will save you money if you know how to take advantages of them!
Here are 3 tax breaks you can consider if you are going to the chapel.
- Wedding decorations, food left-over, etc as charitable donation
If you are getting married in a church, why not consider donating the food leftover, wedding decorations, flowers, etc to the church (or any non-profit organisation). It will count as charitable donation, and an individual can get tax relief by doing so.
If you donate £10,000 worth of your wedding items to the church, and you are a higher rate taxpayer, you can save £2,000 in tax.
- Inheritance tax exemption
Attendees who give gifts to weddings are exempt for Inheritance tax purpose. Parents of the bride and groom can give up to £5,000 worth of gifts tax-free. Grandparents can give up to £2,500 that are exempt from Inheritance tax purposes. Others relatives and friends can give up to £1,000 tax-free.
So make sure you do keep a record of the wedding gifts you’ve given.
- Turning your wedding as a special event
If you run a business and your partner is also your business partner, and you are inviting your business associates, staffs, other business partners, etc to the wedding and use this opportunity to promote your business, that can be tax deductible too.
Also it becomes good networking opportunity for the attendees and they may pick up some costs that are tax-deductible for them as well.
There will be lots of ways to save money in your wedding by taking advantage of those tax breaks morally, depends on your circumstances. However, I’d highly recommend you to seek professional advice to make sure you’ve done enough preparation to qualify for those tax breaks.
Hope you enjoy those ‘best wishes’ that taxman is giving to those who are planning a happy marriage!