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bigduckontax
bigduckontax, Accountant
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I thought that in April 2015 a marriage allowance of £200.00

Customer Question

I thought that in April 2015 a marriage allowance of £200.00 for married couples was coming into force, am I mistaken.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

Well, yes and no; a married couples allowance has been around for many years, but there are limitations. Gov UK web site advises that these are:

'You can claim Married Couple’s Allowance if all the following apply:

  • you’re married or in a civil partnership
  • you’re living with your spouse or civil partner
  • one of you was born before 6 April 1935'

The last condition is a tad limiting. This allowance can be transferred between spouses and partners as convenient for reducing inividual tax positions.

You can find full details of the alowance here:

https://www.gov.uk/married-couples-allowance/further-information

There is a further problem as it can be withdrawn as income becomes sucessively higher. You can read the Which guide summary here:

http://www.which.co.uk/money/tax/guides/tax-in-retirement/married-couples-allowance/

I think you will find it very explanatory.

I do hope I have been able to shed some light on your question.

Expert:  bigduckontax replied 2 years ago.

I am so sorry, I have mislead you. Yes there is a GBP 200 adjustment available. According to the Telegraph it operates as follows.

'How does it work?

All workers have a personal allowance for tax purposes. This is the amount of money an individual can earn in a year before they must pay tax. It is currently £9,440 and will rise to £10,000 in April. The Government has not said what level the personal allowance will rise to in 2015/16, but some experts predict it will reach £10,500.

Married couples and civil partners where one person earns less than the personal allowance will be allowed to transfer up to £1,000 of their unused allowance to their partner, reducing their tax bill.

For example, if one person earns £5,000 and their partner earns £20,000, the lower earner can transfer £1,000 of their unused allowance to the higher earner. The higher earner can take home an additional £1,000 tax-free, so thanks to 20pc relief they will pay £200 less tax over the year.'

I am so sorry not to have told you of this change.

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