At the beginning of this week a new Marriage Allowance came into effect, offering tax benefits for eligible couples – those married or in a civil partnership.
For 2015/16 the personal income tax allowance has risen to £10,600.
In situations where one partner’s earnings are less than this (including pensions, savings or investment income) they may be entitled to the Marriage Allowance. The scheme allows the transfer of 10 per cent of unused personal allowance to a partner.
The partner making the transfer, which could be up to £1,060, must themselves have earnings within the basic income tax threshold – £42,385 for 2015/16.
Making full use of this relief could save couples up to £212 per year. If one partner earns over the basic rate then the couple will not be eligible for the new allowance.
The Government estimates that more than four million married couples and 15,000 civil partnerships will benefit from the new measure.
You can register and make your application online at: www.gov.uk/marriage-allowance, or get in touch and we can assist you with making the relevant claims.
Rennie Welch LLP accept no liability on the basis of this note and detailed advice, taking into account individual circumstances, should be obtained before entering into any transaction.
If you require assistance or advice in connection with the this or any other tax matter, please contact Gill Adamson at Rennie Welch on 01573 224391 or by email at firstname.lastname@example.org