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Transfer of tax allowances for married couples and civil partners

Posted by: edwinsmith on April 8th, 2015

It was announced in the 2013 autumn statement that from 6 April 2015 tax allowances could be transferred between certain married couples /civil partnerships. Where neither spouse/civil partner pays more than the basic rate of tax then a spouse/civil partner who is unable to use all their personal allowances will be able to transfer up to £1,060 of their unused allowance to their spouse/civil partner.

This benefits couples (married/civil partnerships) where one spouse/civil partner has a total income less than their personal allowance (for 2015/16 £10,600). The recipients of the allowance will be able to reduce their tax liability by up to £212 (£1,060 x 20%).

This transfer of allowances is not eligible to:

  1. Couple/civil partnerships where one/both pays tax at the higher/additional rate.
  2. Married couple already claiming the married couple allowance – this is where at least one of the couple was born before 6 April 1935.
  3. Non UK domiciled individuals who elect to pay tax on the remittance basis of tax or who would be higher rate or additional rate tax payers if their worldwide income was within the scope of UK tax.

Please contact us if you would like further assistance.

Filed under: Individuals, Tax