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Are you making use of your Marriage Allowance?

The Marriage Allowance allows you to transfer £1,190 of your own Personal Allowance to your husband, wife or civil partner on the basis they earn more than you. This has the effect of reducing one tax bill by up to £238.

How does it work and who can use the Marriage Allowance?

To qualify as a couple, one person, must have an income of £11,850 or less. In simple terms – one of you must be a non-taxpayer and one must be a basic-rate taxpayer. Higher rate taxpayers do not qualify.

  • #1 Husband, wife or civil partner earns less than £11.850.
  • #2 Husband, wife or civil partner earns more than £11.850 and less than £46,350.

More Good News

You can backdate your claim to include any tax year since 5 April 2015 that you were eligible for Marriage Allowance.

All sounds good – How does it work?

The partner who has any unused personal allowance can transfer 10% of their allowance (£1,190) regardless if they have £8,000 of allowance left or £100, you can only transfer the maximum of £1,190.

Marriage Allowance – Example Alan & Irene

Alan works part-time and earns £5,000.

Alan’s personal allowance for the year is £11,850

Alan’s wife, Irene earns £35,000 and is a basic-rate taxpayer (lower than £46,350 so she’s eligible).

Alan transfers £1,190 to Irene whose personal allowance rises to £13,040, Irene has an extra £1,190 which she would’ve paid tax on at 20% but is now tax-free, so she’s gains £238 (20% of £1,190).

Contact Us if you think you might quailfy!

If you’d like help or guidance of on claiming your marriage allowance (if you think you’re eligible), email: richard@pfep.co.uk or call: 0121 421 7144.