From 6th April this year the new Marriage Allowance is a tax break available for more than 4 million married couples and 15,000 civil partnerships.
Marriage Allowance will let you transfer some of your Personal Allowance to your partner. This is the amount of income you receive before paying tax.
This means a spouse or civil partner who doesn’t pay tax (not earning or earning below the basic rate threshold) can transfer up to £1,060 of their personal allowance to a spouse or civil partner – as long as that spouse or partner doesn’t pay more than the basic rate of income tax.
The maximum saving is 20% x £1,060 = £212
Are you eligible?
You can apply for Marriage Allowance if:
– 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 you or your partner were born before 6 April 1935, you may be able to claim instead: https://www.gov.uk/married-couples-allowance
Sounds confusing so if you need help and advice call Vincent & Co on 01803 500 500
Register online here: https://www.gov.uk/marriage-allowance