If you are married or in a civil partnership you may be able to claim an allowance of £900 against tax as a marriage tax allowance. This is a widely under claimed allowance.
Marriage tax allowance allows couples to transfer up to 10% of their earning between them tax-free.
Who can claim marriage allowance?
You are able to claim marriage allowance if all of the following apply to you:
· You’re married or in a civil partnership
· You do not pay income tax or your income is below personal allowance
· Your partner pays income tax at the basic rate, which usually means their income is between £11,851 and £46,350
You are still entitled to claim the allowance if your partner is receiving a pension or lives abroad. For those who were born before 6thApril 1935, it can be more beneficial to claim the Married Couples Allowance.
What is the married couples allowance?
Married Couple’s Allowance is claimable for marriages before 5thDecember 2005 and applies to those born before 6thApril 1935.
Under the allowances you can reduce your tax bill by up to £869.50 per year.
How to claim marriage allowance?
You can apply for marriage allowance online. The person with the lowest income should do this. If your application is successful, changes to your personal allowance will be backdated to the beginning of the tax year.
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