Accounting, Personal Finance, self-assessment, Taxation

“I do do do” to Marriage Allowance

If you are married or in a civil partnership, you and your partner may be eligible for the tax-free break known as marriage allowance, and if your claim is backdated, you may take home a lump sum of up to £900.

This tax year (2018/2019), the allowance allows the transfer of £1,190 from a low-earner’s personal allowance to their higher-earning partner. That’s a saving of up to £238. Next tax year, when the personal allowance goes up to £12,500, the transferable sum will be £1,250, saving £250 in tax.

To be eligible, the lower earner must:

  • be either married or in a civil partnership
  • either not be taxpayers or have an income below the personal allowance
  • have a partner who pays tax at the basic rate ie annual income must be between £11,851 and £46,350

To apply go to the HMRC’s website. Note that the lower earner is the applicant.

About Phoenix

Accountant | Tax Specialist | Dreamy Entrepreneur | Blogger


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