The Marriage Allowance is a tax break for couples where one partner doesn’t use all their tax free allowance. For the 2016-17 tax year, which runs from 6th April 2016 to 5th April 2017 the tax free allowance is £11,000. If you meet all the criteria below, you can transfer some of your tax free allowance to your partner.
If the three points about describe you, you can apply for the Marriage Allowance on the gov.uk website. HMRC will need to verify you and your partner so you must have national insurance numbers to hand for both of you. There are various other pieces of information that HMRC may ask for including:
If you receive some of your partner’s tax free allowance, your PAYE tax code will have a special letter at the end:
The Marriage Allowance is worth up to £220 in the 2016-17 tax year. Up to 10% of your full £11,000 tax free allowance can be transferred to your partner. This means that if you earn £9,900 or less, you can transfer the maximum £1,100. As your partner will pay tax of 20% at the basic rate, the cash benefit is 20% of the allowance transferred, being a maximum of £220.
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