Transferrable marriage allowance

Could you or someone you know be missing out on new tax breaks for couples?

Last autumn the Government announced a new tax break for married couples and civil partnerships – the transferrable marriage allowance. .


How does the transferrable marriage allowance work?

Everyone has a personal tax allowance and for most tax payers it’s increasing to £10,500.

As of the 6 of April the transferrable marriage allowance comes into effect. From this date married couples or civil partnership couples are able to transfer a set amount up to £1,050 of unused personal tax allowances to their spouse or civil partner.

There are, however, conditions surrounding eligibility and who can receive the transferrable marriage allowance.


Who is eligible to transfer their personal allowance?

A married spouse or civil partner who is:

  • a part-time worker or stay at home parent
  • earning less than £10,601 a year (including pension, savings & investments)
  • married to a lower tax rate payer earning less than £42,385

And yet another condition – both partners were born after 6 April 1935

This is not to be confused with the married couples allowance due to married couples and civil partners where at least one of the couple was born before 6 April 1935.

This leads on to those who miss out.


Who misses out?

  • Couples, where one of them is a higher rate taxpayer
  • Co-habiting couples
  • Couples eligible for and claiming the married couples allowance where at least one of the couple was born before 6 April 1935.


How much is it worth?

A partner could potentially reduce a tax bill by up to £210 a year.


When can you apply?

HMRC has already opened up registration online and couples who are eligible should ensure that they’re maximising their tax relief.


How do I claim?

HMRC is accepting registrations and you need to actively access the allowance through HMRC website.

The claim must be made by election and remains in place until it is withdrawn or eligibility ceases.

It is worth noting that if the election is made after the end of a particular tax year the election only applies to that particular tax year and does not automatically carry forward.


“The Marriage Tax Allowance adds further complexity to an already complicated tax system that tax payers struggle to deal with,”

Anita Monteith of ICAEW


Who can Murrison & Wilson help?

As with any changes to tax legislation it’s likely to cause more confusion and people often miss out on financial benefits as it becomes harder to make sense of it all and make a claim.

At Murrison & Wilson we simplify tax planning for our clients and ensure they maximise their tax relief.

In the case of the transferrable marriage allowance those most affected are people at the margins of the tax rates. A slight pay rise or pay decrease could tip the balance and have an impact on personal allowances and any potential tax relief.


What’s the next step?

If you’re unsure about the new rules and whether you or your spouse are affected get in touch as soon as possible.

Don’t miss out on the 2015/2016 transferrable marriage allowance.

If you, a friend or family member is in any doubt about the impact of this change don’t hesitate to call on 0141 290 0262.


Best wishes



Leave a Reply

Your email address will not be published. Required fields are marked *