It’s not very romantic but saves millions

IT IS unclear whether Ken Dodd or Anne Jones knew that tying the knot was quite so advantageous on the tax front.

But one of the greatest, if unromantic, benefits of making a formal commitment – even if it is last minute – is that married couples and civil partners can inherit their partner’s estate without paying a penny in tax.

Unmarried couples – regardless of how long they have been together – are charged inheritance tax at a punishing 40 per cent on any assets they leave to each other above £325,000.

Had Sir Ken remained unmarried and left his estimated £7million estate entirely to Lady Dodd in his will, she might have owed as much as £2.7million in inheritance tax (IHT).

Another marriage-related perk is that a widow or widower inherits their partner’s tax- free £325,000 IHT allowance. This means Lady Dodd’s allowance will double to £650,000.

Every taxpayer also gets a main residence allowance, which passes to a married partner on death. It is currently £100,000 per person.

It means the surviving partner in a marriage can leave up to £850,000 tax-free if they are bequeathing their home to children or grandchildren.