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UK inheritance tax rules can leave an unmarried person’s partner without access to the spouse or civil partner exemptions and transferable allowances available to married couples and civil partners. ONS data cited by MoneyWeek show 8.6 million people lived alone in the UK in 2025, but the source does not provide evidence that single-person households are paying more inheritance tax overall.
Unmarried people can face a higher inheritance tax bill than married couples or civil partners because they cannot use the same spouse exemptions and transferable tax allowances, according to a MoneyWeek report. The issue has added relevance as 8.6 million people lived alone in the UK in 2025, although living alone does not by itself determine whether an estate owes tax.
Under UK inheritance tax rules, transfers between spouses and civil partners are generally exempt from inheritance tax. Any unused portion of one partner’s inheritance tax threshold can also usually be transferred to the surviving spouse or civil partner. An unmarried partner does not receive these benefits simply because the couple has lived together for a long time or shared a home.
The standard inheritance tax threshold, known as the nil-rate band, is £325,000 per person. A further residence nil-rate band may apply when a qualifying home is left to direct descendants, subject to eligibility rules and limits. Married couples and civil partners may be able to transfer unused amounts of these allowances, potentially increasing the threshold available to the survivor’s estate. Unmarried partners cannot transfer them to each other under the spouse and civil partner provisions.
That difference can affect how much an estate passes to beneficiaries after the second partner dies. The actual tax due depends on the value and composition of the estate, gifts made during life, who inherits, available reliefs and the applicable rules. MoneyWeek’s report describes a potential disadvantage; it does not establish that every single person or unmarried couple will owe inheritance tax.
Why Unmarried Partners May Pay More
The rules matter most where a person has a substantial estate and intends to leave assets to a long-term partner. If the partners are unmarried, they may not be able to pass assets between themselves free of inheritance tax under the spouse exemption, and the survivor cannot inherit the deceased partner’s unused tax bands. In contrast, qualifying transfers between spouses and civil partners can preserve allowances for use later.
This can change how much is left for children, other relatives or a surviving partner. The distinction is based on legal relationship status, not the duration or closeness of a relationship. People who live together may assume they receive the same tax treatment as married couples, but cohabitation alone does not confer the spouse or civil partner exemptions described in the report.
That does not mean marriage or civil partnership is the right choice for everyone, or that changing relationship status is the only way to plan an estate. The figures and rules need to be considered alongside a person’s family circumstances, assets and wishes. Estate planning can involve wills, lifetime gifts and other arrangements, but each has its own legal and tax conditions.
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More People Live Alone in Britain
The Office for National Statistics figures cited by MoneyWeek indicate that 8.6 million people lived alone in the UK in 2025, compared with 7.7 million in 2015. People living alone represented 29.5% of households in 2025, up from 28.6% in 2015. These numbers describe household composition, not marital status or inheritance tax liability: someone living alone may be married, separated, widowed or single.
MoneyWeek also points to the pressure that living alone can place on household budgets, including food, energy and transport costs. Those day-to-day expenses are separate from inheritance tax, but they underline why decisions about assets and the people who will inherit them can matter to individuals without a spouse or partner. The ONS figures do not show how many single people have estates above the tax thresholds or how much inheritance tax they pay.
Who Will Actually Owe Tax
The supplied report does not give a count of unmarried people affected, an estimate of additional tax collected, or a comparison of inheritance tax bills by relationship status. The ONS household data cannot answer those questions, since living alone is not the same as being unmarried and does not reveal a household’s assets.
Whether an estate owes tax depends on individual circumstances and the rules in force at the relevant time. The source material does not set out a specific person’s estate, beneficiaries or planning arrangements, so it cannot establish what any reader would owe. Thresholds, reliefs and eligibility conditions should be checked against current official guidance or with a qualified adviser before decisions are made.
Check Current Rules Before Planning
Readers concerned about an estate can start by identifying which inheritance tax thresholds and exemptions may apply, whether a home is eligible for the residence nil-rate band, and who is named to inherit under a current will. Unmarried couples may also want to review how jointly held property and other assets would be treated, rather than assuming that living together creates the same protections as marriage or civil partnership.
The next step is to verify the current rules with HM Revenue and Customs guidance or seek advice from a solicitor or tax professional familiar with inheritance planning. Any plan should reflect the estate’s value, family arrangements and intended beneficiaries. MoneyWeek’s report raises the relationship-status issue, but the available source material does not announce a policy change or give a new government deadline.
Key Questions
Can an unmarried partner inherit without paying inheritance tax?
Not under the spouse exemption solely because the couple lived together. The exemption generally applies to transfers between spouses and civil partners. Whether tax is due on an estate depends on its value, beneficiaries, gifts, reliefs and other circumstances.
Can unmarried couples transfer unused inheritance tax allowances?
The spouse and civil partner transfer rules do not extend to unmarried partners simply because they have cohabited. Married couples and civil partners may be able to transfer unused portions of certain allowances, subject to the applicable rules.
Does living alone mean someone will pay inheritance tax?
No. The ONS statistic records people living alone and says nothing about their estates or tax bills. Inheritance tax liability depends on a person’s estate and the rules that apply.
How many people lived alone in the UK in 2025?
The ONS data cited by MoneyWeek says 8.6 million people lived alone in the UK in 2025, compared with 7.7 million in 2015. People living alone made up 29.5% of households in 2025.
Source: rss
