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The Accountants for Growth

Have you transferred your Marriage Allowance?

Have you transferred your Marriage Allowance?

What is it?

The Marriage Allowance is a new way for couples to transfer a proportion of their personal allowance (the amount you can earn tax-free each tax year) between each other. It will reduce your husband, wife or civil partner’s tax by up to £212.

Are you eligible?

Is your income £10,600 or less in the 2015-16 tax year?

Are you married or in a civil partnership?

Is your partner’s annual income between £10,601 and £42,385?

Were you born on or after 6 April 1935?*

*If you or your partner were born before 6 April 1935, you may be able to claim Married Couples Allowance instead

How does it work?

The partner with the unused amount of personal allowance can transfer £1,060 of their allowance to the other (so basically 10% of the full allowance). It doesn't matter if they have £3,000 of their allowance left unused or £5,000; they can only transfer £1,060.

If you have less than £1,060 of unused personal allowance, it is still beneficial. To take advantage you would transfer the full £1,060 to take advantage however, this may mean that you exceed your personal allowance. If this is the case, you would pay tax on the amount you have gone over but there will still be a net gain for the two of you, just not that much.

Find out more

If you would like to find out more about how to maximise the tax relief of your combined personal allowances please get in touch by calling us on 0121 706 8585 or emailing us at [email protected].

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