Joint Tax Election

Transferrable MCA: Gift your partner £220.

The Government has in place a scheme (Transferable Married Couples Allowance) whereby certain couples can make an online claim to transfer unused tax allowance of up to £1,100 (10% of the annual Personal Allowance). This enables your husband, wife or civil partner to potentially pay up to £220 less tax (£1,100 x 20%) per year.

In order to clearly define the scheme within employee tax codes, the following suffixes were applied from April 2015:

• The Transferor of the allowance will have a suffix ‘N’ on their tax code
• The Recipient of the allowance will have a suffix ‘M’ on their tax code

If you think you were entitled to this allowance from the 2015/16 tax year you can backdate your claim. Below is the link to HMRC’s website for further information and how to apply for the allowance:

• https://www.gov.uk/marriage-allowance/how-it-works

Disclaimer - All information in this post was correct at time of writing.