HM Revenue and Customs has advised that more than 700,000 married and civil partnered couples who are still eligible for the marriage allowance tax break have not yet claimed their entitlement.
Couples could be missing out on up to £238 a year and with the possibility to backdate and include any tax year since 5 April 2015 that you were eligible, this is certainly something you should take a quick look at.
Financial secretary to the Treasury Mel Stride said: “This is a really important tax relief and reflects the social importance of marriages and civil partnerships. I’d urge those that haven’t yet managed to claim the money to do so right away.”
Marriage Allowance Tax – what does it mean for you?
- Couples must be married or in a civil partnership
- To benefit as a couple, you need to earn less than your partner and have an income of £11,850 or less, meaning you pay no tax.
- Your partner’s income must be between £11,851 and £46,350 (£43,430 in Scotland) for you to be eligible. If they are earning more than £46350 (£43,430 in Scotland) then you are not eligible.
- Marriage Allowance lets you transfer £1,190 (10%) of your Personal Allowance to your husband, wife or civil partner.
- This can reduce their tax by up to £238 in the current tax year.
- Entitlement can be back dated to 2015 when it took effect.
- If your partner has died since 5 April 2015 you can still claim.
To apply online at Gov.UK, click here.
If you have any questions about your personal tax or need financial planning advice, please get in touch on 01244 400315 or email [email protected] and one of our tax experts will be happy to help.