Interested in the new Marriage Allowance?
It is estimated that 4 million married couples and civil partners are set to benefit from an annual tax reduction of up to £212, through the new “Marriage Allowance” which comes into effect from 6th April.
The Marriage Allowance enables a spouse or civil partner with income below the Personal Allowance level (£10,600 for the forthcoming 2015/16 tax year) to transfer £1,060 of their Personal Allowance to their higher-income spouse or partner. As long as the person receiving the transfer is not a higher rate taxpayer (for 2015/16 the higher rate threshold is set at £42,385), the couple would see an annual tax reduction of up to £212, or around £17.66 a month.
HMRC are now inviting those who may benefit to register their interest, the purpose of which appears primarily to be to assist HMRC in managing its introduction and help those who register to apply for the allowance in stages after 6th April. For those who are eligible and don’t register now, they will be able to make an application during the 2015/16 tax year and still receive the full allowance.
Please note the Marriage Allowance applies for couples born after 6th April 1935, with the existing Married Couples Allowance continuing for those born before this date.
For further information, please contact our Tax Team 01904 464100 or email@example.com