TaxPersonal TaxGovernment launches marriage allowance

Government launches marriage allowance

Married couples could save £212 per year with tax break

Government launches marriage allowance

MARRIED COUPLES are now able to register for a new tax break which could save them up to £212 per year, the Treasury has confirmed.

From 6 April 2015, more than four million married couples and 15,000 civil partnerships will be eligible for the tax break.

The allowance means a spouse or civil partner who doesn’t pay tax, or doesn’t pay tax above the basic rate of income tax, can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax.

Couples can register their interest to receive the allowance now at gov.uk/marriageallowance.

One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their PAYE tax code.

Chancellor George Osborne said: “We made a promise to introduce a recognition of marriage into our tax system – and now we’re delivering on that promise.
“This includes updating the tax system so that it recognises marriage and civil partnerships. Our new marriage allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.”

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