19 March 2020
Marriage Allowance was introduced for the 2015/16 tax year and is available for married couples and civil partners where all of the following is true:
- One of the couple has their income fall under their personal allowance (2019/20 £12,500),
- their spouse / civil partner is a basic rate taxpayer (total income in 2019/20 falling in the band £12,500 - £50,000),
- neither of the couple was born before 6 April 1935 (as they would likely be separately eligible to Married Couple’s Allowance).
Marriage Allowance involves the transfer of 10% of the personal allowance of the person whose income falls within the personal allowance to their spouse. The tax saving effect of this on the 2019/20 tax year would therefore be 10% of the £12,500 allowance at 20% tax, so £250 marriage allowance can be claimed through the Self Assessment Tax Return. However, if you either don’t make a tax return or need to make a claim in respect of a year ‘out of time’ for correction to a tax return, you can apply for Marriage Allowance online at https://www.gov.uk/apply-marriage-allowance.
Claims for historic years need to be made within 4 years of the end of the tax year in question, meaning the opportunity to claim for the 2015/16 tax year will be lost after 5 April 2020.
Should you have any queries regarding the marriage allowance you can speak with Nick Hailstone on 01462 687333.