March 23, 2018Are you keen to know more about Marriage Allowance?
Figures available from HM Revenue and Customs, under the Freedom of information Act estimate that up to two million couples are still missing out on the ‘Marriage Allowance’ tax break that was introduced in 2015.
At current rates, the tax allowance (relevant to examinable tax year 2017/8) is worth £230 per couple per year. In addition, the claim can be backdated for the past two financial years, saving couples a total of up to £662. Couples have up to four years to claim backdated allowances.
So, who is eligible to claim? Marriage Allowance only applies to couples with specific circumstances, so let’s remind ourselves of what they are:
- Firstly, couples need to be married or in a civil partnership;
- The spouse wishing to transfer must have an income of less than £11,500;
- The spouse receiving the transferred allowance must not be a higher rate tax payer;
- The receiving spouse must be resident in the UK for tax purposes;
- The amount that can be transferred in the 2017/18 tax year is limited to £1,150.
This, therefore, only benefits couples where one doesn’t earn enough income to use their full personal allowance (less than £11,500) and the other one is paying tax at no more than the basic rate.
Both members of the couple must also have been born on or after 6 April 1935. if one was born before this date then they can claim the married couple’s allowance instead.
For more information, please see here
Important information:
Tax benefits and allowances described in this document are based on current legislation and HM Revenue & Customs practice and depend on personal circumstances. You should not take, or refrain from taking, action based on the content and no part of this document should be relied upon or construed as any form of advice or personal recommendation.