Marriage Allowance

[CollegeGirl]

My daughter has just told me of this new(?) allowance and I thought I'd share it in case anyone else might benefit.

Basically this allows people who earn less than the tax allowance (currently £10,600) to transfer some of that allowance (up to 10% I believe) to their spouse, meaning that the spouse will pay less tax on their own earnings.

It's not a huge amount of money, but every little helps as they say. This website explains in more detail:

https://www.gov.uk/marriage-allowance-guide/overview

 

[jaymor]

I don't think it is new or there was something very similar where the other spouse could use an allowance that the other could not. Does that make sense

 

[nitram]

It's new and only for those born on or after 6/4/35
The old Married Couple's Allowance for those born before 6/4/35 still exists.

 

[jugglingmum]

As nitram says it is new, and one partner needs to earn less than £10,600 and the other less than £42,385

https://www.gov.uk/marriage-allowance-guide/eligibility

It is worth at 20% £212. And for many people may cost more to apply for than they gain.

Was part of governments publicity about supporting marriage.

 

[turbo]

I remember in 1980 when I had just started work and husband was a still a student that I was able to have all of husband's tax allowance. I can't remember if it was because he was a post graduate student.

 

[nitram]

"I was able to have all of husband's tax allowance."

That was before April 2000 when the married couple's allowance was abolished except for those born before 6/4/1935

 

[turbo]

Thanks nitram. I seem to remember that I paid very little tax and it was a big help as we lived in London and bought a 2 bed flat in 1981.

 

[CollegeGirl]

It costs to apply for it ? Is that right?

 

[jugglingmum]

You don't have to pay to claim it, but if you value your time and given the normal complexities that HMRC seem to throw at everything, is it worth it?

It should benefit basic rate tax payers with a non working spouse (ie classic mums with kids) but not all will complete the form.