The new Marriage Allowance will let you transfer some of your Personal Allowance to your spouse or civil partner. This is the amount of income people can get before paying tax.
The Marriage Allowance is most advantageous if throughout the 2015/16 tax year one of you has income of £10,600 or less in the 2015/16 tax year, you may be able to reduce your partner’s tax by up to £212. The 2015/16 tax year starts on 6th April 2015 and ends on 5th April 2016 the following year.
In order to qualify for the Allowance, throughout the 2015/16 tax year you must both be:
- Not higher or additional rate taxpayers,
- UK resident and domiciled,
- Married or in a civil partnership with one another; and
- Born on or after 6th April 1935.
If you and your partner are eligible for Marriage Allowance, you can register your interest with H online. HMRC will send you an email explaining what to do next.
If your application is successful, HMRC will backdate any changes in your tax to 6th April 2015.
If you'd like to discuss your personal tax affairs in more detail, please contact us and we'll put you in touch with your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.