Almost one in five unmarried Britons are considering getting married to reduce their inheritance tax (IHT) liability, according to research by MoneySuperMarket.

The survey of 2,000 UK adults found that 19% of unmarried people were considering marriage for tax purposes, increasing to 29% among unmarried couples living together and 32% among those aged 25 to 34.

Kara Gammell, life insurance expert at MoneySuperMarket, said differences in the tax treatment of married couples and civil partners compared with unmarried couples were influencing estate-planning decisions.

“Even couples who have been together for many years won’t qualify for the spouse or civil partner exemption if they aren’t married or in a civil partnership,” she said.

The standard inheritance tax rate is 40%, although the amount payable depends on the value of an estate and the available allowances and exemptions. Alternatives to marriage included trusts and life insurance policies written in trust, which can help families manage how assets are passed on and potentially keep insurance payouts outside an estate for IHT purposes.

The research also revealed a lack of preparation for inheritance planning, with only 41% of UK adults having a will. This falls to 35% among unmarried people living with a partner, while 18% of respondents said they were putting off making one.

Gammell added: “Estate planning isn’t just about tax; it’s also about making sure loved ones have financial security if the unexpected happens. There are steps you can take now, making a will is important, particularly if you’re not married."

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