Believe it or not, there are some perks associated with being married. One of these benefits is Marriage Allowance, an entitlement that often goes unclaimed.
The Married Couples Allowance for individuals born after 6th April 1935 will allow you to transfer some of your Personal Allowance to your partner.
The Personal Allowance is the figure that you as an individual are able to earn before being taxed on your earnings, currently £11,850 and increasing to £12,500 on the 6th April 2019. If your income for the 2018/2019 tax year is less than your Personal Allowance you may be able to reduce your husband, wife or civil partner’s tax by up to £238.
This is positive news for couples where one of you has zero earnings or £1,900 or more of their Personal Allowance remaining – by utilising the new marriage allowance you can make full use of the initiative and claim back the £238.
In order to claim Marriage Allowance, the following conditions apply:
- You are married or in a civil partnership
- You have an annual income of less than £11,850 – including pensions, savings and investments
- Your spouse or civil partner has an annual income of between £11,851 and £46,350 (they do not pay tax at higher rates)
- You are both born after 6th April 1935
For further advice on this subject, contact your nearest office and speak to one of our specialist tax advisers.