The Marriage allowance

The marriage allowance was introduced to take effect from the tax year 2015/16.

The marriage allowance allows certain individuals who are married or in a civil partnership to elect to transfer some of their personal allowance to their spouse or civil partner.

Who will get the benefit?

The election will be relevant to those couples where one of the spouses either has insufficient income to utilize his or her personal allowance; or has income which is taxed at 0%, for example because it falls wholly within the starting rate band for saving income.

What is the benefit from this allowance?

Anyone who will be eligible can transfer 10% of his/her personal allowances.

The recipient obtains a reduction in his income tax liability equal to 20% of the transferred amount.

Conditions to meet to qualify for the Married allowance

  • The individual making the election and individual receiving the married allowance must be married or in a registered civil partnership for all or part of the tax year. There is no requirement for the spouses to be living together.
  • The married couple’s allowance must not have been claimed. Individuals born before April 1935 may therefore qualify for both the marriage allowance and the MCA, but only one of these can be claimed.
  • The individual must be married in the tax year to which the election applies and at the time the election is made.
  • Neither spouse pays tax at either the higher, dividend upper or additional rates.
  • The election to claim marriage allowance must be made within four years of the end of the tax year which it applies.

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