The government has announced that from April 2015 married couples and civil partners may be eligible for a new Transferrable Tax Allowance. This Allowance will enable spouses and civil partners to transfer a fixed amount of their personal allowance to their partner.
The option to transfer will be available to couples where one partner is a basic rate tax payer (earning below £42,285 in 2015/16) AND the other partner has unused personal allowances for the year. The fixed amount will be set at £1,000, thus an individual will be able to transfer £1,000 of their personal allowance to their spouse or civil partner. It will mean that the higher earner will be able to earn £1,000 more before they start paying income tax. Couples who claim this Allowance, based on today’s rates could save up to £200 in tax.
The claim will be made online and the entitlement will be from the 2015/16 tax year. Couples will be entitled to the full benefit in the first year of marriage.
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