t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Could you claim a £662 tax refund?

Source: HM Revenue & Customs | | 24/10/2017

The marriage allowance (MA) allows couples, where one partner does not fully utilise their personal tax allowance, to share a limited amount of the unutilised portion with their spouse. The MA is only available to married couples and those in a civil partnership.

The MA allows the lower earning partner to transfer up to £1,150 (2016-17: £1,100) of their unutilised personal tax-free allowance to a spouse or civil partner. The MA can only be used when the recipient of the transfer doesn’t pay more than the basic 20% rate of income tax. This transfer reduces the receiving spouse's tax by up to £230 in the current tax year, 2017-18 i.e. (£1,150 x 20%).

Couples that have not yet claimed the MA can backdate their claim to 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 MA.

Planning note

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 during 2017-18. The receiving partner’s income for the same year must be between £11,501 and £45,000 (or £43,000 if you’re in Scotland).

An application for the marriage allowance can be made online or by telephone. There is an online application process you can use at https://www.gov.uk/apply-marriage-allowance.



 

Latest News

  • Appealing to a tax tribunal

    13/02/2018 - More...

    There are a number of different options open to taxpayers that disagree with a tax decision issued by HMRC. The first step is to make an appeal to HMRC against the tax decision. If

  • Does a charity pay tax?

    13/02/2018 - More...

    The tax treatment of charities can be very complex. As a first step any charity hoping to benefit from any beneficial treatment needs to be recognised as a charity for UK tax

  • Pay and paternity leave

    13/02/2018 - More...

    When your partner gives birth or when you adopt a child or have a baby by surrogate, you may be entitled to 1 or 2 weeks paternity leave and paternity pay. You are also entitled to

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login


Copyright © 2018 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy