The government have launched the registration for a new marriage allowance, a tax break for married couples which could potentially save them up to £212 a year.
The allowance means a spouse or civil partner who doesn’t pay tax (they are either not earning at all or are earning below the basic threshold of £10600) can transfer up to £1060 of their personal tax free allowance to spouse or civil partner as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax.
This policy recognises marriage and civil partnerships in the income tax system. Taking the tax liabilities of a couple together, it can provide a financial benefit where one spouse or civil partner has an income less than their personal allowance
Prime Minister David Cameron stated that ‘We can afford to do it because of the growing strength of the British Economy, and as a result it means families up and down the country can get a little bit of extra support and more financial security.’
From the 6th of April up to 4million married couples and 15000 civil partners will be eligible. You can register here: https://www.gov.uk/marriage-allowance
One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change in their Pay As You Earn tax code. To be eligible for this tax break you must meet the following criteria:
- you’re married or in a civil partnership
- you have an annual income of less than £10,600 – including pensions, savings and investments
- your spouse or civil partner has an annual income of between £10,601 and £42,385
- you were both born on or after 6 April 1935
If you want to find out more ways to save on tax, please contact us on 0113 2864486 or book a free consultation.
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