Feb 2015
10
Transferable Personal Allowance – will you benefit?
On 6th April 2015, a new tax break will come into effect which is expected to benefit four million married couples in the UK.
The new measure will allow a spouse or civil partner who is not liable to income tax above the basic rate to transfer up to £1,060 of their personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate.
The transferred personal allowance will primarily benefit single earner households, where the personal allowance of a non-earning spouse was previously wasted, and will act as a tax reducer for the recipient with a reduction in income tax of up to £212.
Married couples or civil partnerships who are eligible to claim the Married Couples Allowance i.e. at least one of the spouses or civil partners was born before April 6, 1935, however, will not be able to make a transfer.
Additionally, it will not be available to non-UK domiciled individuals who elect to pay tax on the remittance basis of taxation or non-UK residents who would be higher or additional rate taxpayers if their worldwide income was within the scope of UK tax.
A simple online eligibility checker and initial registration process is due soon from the HMRC.
