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Wedding will hit them in pocket.

THE Chancellor's celebrations may not last long when he realises the effect marriage could have on his tax bill.

The irony is that, as the person who abolished the married couple's tax allowance from April 5 this year, he is the author of his own misfortune.

It was worth pounds 197 in hard cash in the last tax year - just about enough for dinner for two and a decent bottle of wine at a top London restaurant.

Chas Roy-Choudhury, of the Association of Chartered Certified Accountants, said: "He administered the final cut to the allowance but it had been withering on the vine for some time.The phasing-out started under the Conservatives."

Although many years from retirement, the couple face the prospect of a smaller state pension. A married couple currently receives a total of pounds 5610, while single people get pounds 3510 each.

As he earns pounds 96,887 as Chancellor and an MP, and Sarah is the highly-paid boss of a PR company, both are over the threshold to qualify for the new children's tax credit, should they decide to start a family.

It's worth a maximum of pounds 442 a year for those earning up to pounds 32,785 but nothing once the higher earner reaches pounds 39,415.

But it's not all bad. Asset transfers between spouses are free of inheritance tax, so savings Brown made through his celebrated "prudence" - and his Westminster home - could be passed on without penalty to his wife and vice-versa.
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Publication:Daily Record (Glasgow, Scotland)
Date:Aug 4, 2000
Previous Article:No bells,no fuss no photos sold to hello just a couple in love taking their vows.
Next Article:Sarah's not his trophy - and never never will be.

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