Sutton business advisers and accounts Harmer Slater have published details of the marriage allowance which came into force on 6 April 2015 and allows lower earning married individuals to share part of their personal tax-free allowance.
The marriage allowance is available to married couples and those in a civil partnership where a spouse or civil partner doesn’t pay tax or doesn’t pay tax above the basic rate threshold for Income Tax (i.e. one of the couple earns less than £11,000 in 2016-17). There is a different marriage allowance for those born before 6 April 1935.
The allowance allows the lower earning partner to transfer up to £1,100 (2015-16: £1,060) of their personal tax-free allowance to a spouse or civil partner. The marriage allowance can only be used when the recipient of the transfer doesn’t pay more than the basic 20% rate of Income Tax. This could result in a saving of up to £220 for the recipient (20% of £1,100) or around £18.33 a month.
The take-up of the allowance was less than expected in the last tax-year. However, couples that were also eligible for the allowance last year can backdate their claim to 6 April 2015. An application for the marriage allowance can be made online or by telephone. The application must be made by the non-taxpayer who is transferring their allowance.
Harmer Slater are an independent firm of chartered accountants and business advisers located in Sutton, close to central London with experience in dealing with listed and unlisted businesses operating across a range of industries in the UK and overseas. For full details go to HARMER