With the onset of the new 2015/16 tax year, the government is offering qualifying couples the opportunity to share part of their annual Income Tax Personal Allowance. This move follows Prime Minister, David Cameron, describing married couples as “the bedrock of our society”.
Formally known as the Marriage Allowance, this change lets a non-taxpaying individual who is married or part of a civil partnership, to transfer up to 10% of their unused Personal Allowance to their spouse/partner. This offers the taxpaying individual up to £1,060 extra on of top of their own Personal Allowance.
4 million married couples and 15,000 civil partners will be able to take advantage of this new tax break, offering each couple/partnership a saving of up to £212 per year.
Who qualifies for the Marriage Allowance?
In order to qualify for the Marriage Allowance, the couple/partnership is required to consist of one non-taxpayer and one basic-rate taxpayer. The following conditions also apply:
- The couple must be married or in a civil partnership
- The non-taxpayer must have an annual income of less than £10,600
- The taxpayer must have an annual income of between £10,600 and £42,385
- Both partners must have been born on or after 6th April 1935
Individuals born prior to 6th April 1935 may be able to claim the Married Couple’s Allowance instead.
How will this affect your income?
The new allowance will result in married couples or those in civil partnerships being able to save as much as £212 per year.
The increased allowance for the taxpaying individual will be reflected in his or her monthly take home pay, as their tax code will be adjusted to include the additional amount.
The current Government has also hinted that this allowance will continue to rise in line with any increase to the standard Personal Allowance.
You can register for the scheme now via the .gov website, however please be aware that you will not be able to see the benefits of the allowance until later on the in the year.
If you would like more information on how you could benefit from the Marriage Allowance, speak to one of our specialist consultants today – request a call back now.
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