13 Mar New married couples tax break, registration now open…
HMRC have announced that registration for the new ‘Marriage Allowance’ for married couples and those in civil partnerships is now open.
It is estimated that more than 4 million married couples and 15,000 civil partnerships could benefit from an annual tax reduction of up to £212, through the new “Marriage Allowance” which comes into effect from 6th April.
How does the ‘Marriage Allowance’ work?
The allowance will enable eligible spouses and civil partners to transfer a fixed amount of their personal allowance to their spouse. The option to transfer is not available to unmarried couples.
The option to transfer will be available to couples where neither pays tax at the higher or additional rate. If eligible, one partner will be able to transfer 10% of their personal allowance to the other partner which means £1,060 for the 2015/16 tax year which could save them tax of up to £212 a year.
From April, HMRC will contact those who have already registered for the ‘Marriage Allowance’ to apply. People can register at any point in the tax year and still receive the full benefit of the allowance. It is also possible to claim the allowance after the end of the tax year where claimants are unsure if they will qualify.