As detailed in a recent blog written by Matilda Mawson (https://www.whitingsllp.co.uk/has-your-claim-for-marriage-allowance-transfer-been-refused/), a ‘Marriage allowance’ was introduced from 5 April 2015 onwards, which allows a person 10% of their personal allowance to be given to their husband, wife or civil partner.
However, if you or your partner were born before 6 April 1935, you could benefit more as a couple by applying for Married Couple’s Allowance instead.
You cannot get Marriage Allowance and Married Couple’s Allowance at the same time.
Married Couple’s Allowance
The Married couple’s allowance can be claimed if all of the following apply:
- You’re married or in a civil partnership
- You’re living with your spouse or civil partner
- One of you was born before 6 April 1935
If the marriage was before 6 December 2005, then it is the husband’s income that is used to calculate the Married Couple’s Allowance. After this date, it is the income of the highest earner.
How much can we get?
If the husband or the highest earner earns less than £29,600 in the 2019-20 tax year then you can make a claim to reduce your tax bill by £891.50.
If the husband or the highest earner earns more than £29,600 then the tax saving is reduced proportionately; however the minimum tax reduction is £345 for the 2019/20 tax year.
HMRC have a useful calculator, which can be found here:
In order to make a claim for marriage allowance you can either include this on your Self-Assessment tax return or write to HMRC with details of:
- Marriage or civil partnership ceremony
- Spouse or civil partner – including their date of birth
If you have any queries regarding Marriage Allowance or Married Couple’s Allowance then please speak to your usual Whiting & Partners contact.