Transferable Tax Allowances
Wednesday March 2015
Married couples. It’s been a long time since the government announced the introduction of the transferable married couples allowance, but from 6 April 2015 it will come into effect. However, you’ll only be able to take advantage if you and your spouse meet the conditions.
Conditions. The transferable allowance can only be claimed if one of you has income less than the basic personal allowance (£10,600 for 2015/16) and the other isn’t liable to higher rate tax. If they are, even on £1 of income, there’s no entitlement to the transferable allowance.
Making a claim. The maximum allowance that can be transferred is £1,050. If you think you qualify you can ask HMRC to amend your tax code accordingly. Alternatively, if you’re self-employed or aren’t sure if you’ll meet the conditions, delay making your claim until you complete your tax return for 2015/16.
Indicator FL Memo 19 Feb 2015
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