Marriage Allowance – what does it mean for you?
HM Revenue and Customs have advised that more than 700,000 married and civil partnered couples who are still eligible for the Marriage Allowance tax break have not yet claimed their entitlement for the current tax year.
Couples could be missing out on up to £250 a year and with the possibility to backdate and include any tax year since 5th April 2015, this is certainly something you should take a quick look at.
What does it mean for you?
- Couples must be married or in a civil partnership
- To benefit as a couple, one of you must have an income of £12,500 or less, meaning you pay no tax and the other should only pay tax at the basic rate.
- Marriage Allowance allows the non-tax payer to transfer £1250 of their personal tax allowance to their partner, reducing their tax bill by £250.
- The income of the tax-payer must be between £12,501 and £50,000 (£43,430 in Scotland) to be eligible.
- Entitlement can be backdated to 2015 when it took effect as long as the conditions were met.
- If your partner has died since 5 April 2015 you can still claim.
To apply online at Gov.UK, click here.