The new Marriage Allowance

The new Marriage Allowance

The new Marriage Allowance

Married couples can now register their interest online for the new married couples tax allowance at the following link https://www.gov.uk/marriage-allowance.

This new ‘Marriage Allowance’ which comes into effect from 6 April 2015 allows a spouse who does not pay Income Tax to transfer up to £1,060 of their unused tax-free personal allowance to their partner. In future years the allowance will increase and will be set as 10% of the personal allowance.

However it is important to note that it will only be available to basic rate taxpayers, that is those with income not exceeding £42,385 for the 2015/16 tax year.

As such it will be worth up to £212 for those who are able to benefit since it saves tax at a rate of 20%.

Due to the way the new law is written it would appear that, where the level of your income just marginally exceeds the threshold, making charitable donations under Gift Aid or pension contributions could be a useful way of making sure that you still qualify.

If you would like more information regarding the Marriage Allowance or would like to discuss your tax affairs generally, please contact our Tax Partner, Chris Barrington on the details below:

Chris Barrington
email: chris.barrington@jsllp.co.uk
telephone: 01942 292505

 

 

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