The Marriage Allowance is scheduled to come into effect in the 2015-16 tax year.
In a major change to the personal tax regime, this could enable you to transfer up to £1,060 of your Personal Allowance to your husband, wife or civil partner. This, in turn, could reduce their Income Tax by up to £212 in the year.
You will be able to claim the Marriage Allowance if all four of the following conditions apply:
- you are 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 this is the case, you can now register online at https://www.tax.service.gov.uk/marriage-allowance/register. HMRC will then contact those who have registered in April and invite them to apply.
The £1,060 limit will increase automatically in line with any increase in the Personal Allowance in future tax years.
If you would like to discuss the Marriage Allowance in particular or your tax affairs in general, please email us at firstname.lastname@example.org for an initial consultation that is free and without obligation.