For Richer or Poorer – The New Marriage Allowance
Married couples and civil partnerships can now register their interest in the new Marriage Allowance which comes into effect from 6 April 2015. This is separate from the existing Married Couples Allowance which is already available to the over 80’s.
The allowance means that an individual whose total income is below the tax threshold (i.e. £10,600 for 2015/2016) can transfer up to £1,060 of their personal allowances to their spouse or civil partner, saving a possible £212 in tax over the year.
The rules state that the spouse or civil partner receiving the extra allowance must not already be paying higher rate tax, and both parties must have been born after 6 April 1935. The transfer of allowance will be operated through the recipient’s tax code.
The move is intended to support the Government’s belief in traditional family values and an acknowledgement of the role marriage can play in their restoration. Whilst the allowance is not available to unmarried couples (regardless of how long they have been co-habiting), it remains to be seen whether we will witness a rush to the altar to take advantage of the new tax break.
You can register your interest at gov.uk/marriage allowance or contact us for more information.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
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