Marriage allowance still time to apply

Childcare voucher scheme deadline extended
March 18, 2018
Employment law changes taking effect in April 2018
March 26, 2018

Marriage allowance still time to apply

The marriage allowance is available to married couples and those in a civil partnership, where a spouse or civil partner doesn’t pay tax or doesn’t pay tax above the basic rate threshold for income tax.

The lower earning partner can transfer up to £1,150 (increasing to £1,190 in 2018-19) of their personal tax-free allowance to a spouse or civil partner. The marriage allowance can only be used when the recipient of the transfer doesn’t pay more than the basic 20% rate of income tax.

An application for the marriage allowance can be made online or by telephone. The application must be made by the non-taxpayer who is transferring their allowance. To benefit as a couple, the non-taxpayer needs to earn less than their partner and have an income of £11,500 or less in 2017-18.

Planning note

Couples that have not yet claimed the allowance can backdate their claim as far back as 6 April 2015 if they meet the eligibility requirements. This could result in a combined saving of up to £662 for 2015-16, 2016-17 and 2017-18. Couples have up to four years to claim backdated annual allowances.

 

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