The New Married Couples Allowance

The New Married Couples Allowance

The new married couples allowance is coming into force on the 6th of April 2015. If the full transferable amount of £1,060 is utilised this will save couples £212 per year in tax. The government is expecting this to benefit up to 4 million couples in the UK.

How does this Work?

The personal allowance for the 2015/16 tax year is £10,600. If you expect to earn less than this then you can transfer up to £1,060 of your unused personal allowance. This means that their personal allowance could increase up to £11,660, saving you collectively £212 in tax.

Are you Eligible?

To be eligible for this allowance the following must apply:

  • You have to be married or part of a civil partnership
  • You were both born on or after 6th April 1935
  • You have an annual income which is less than £10,600
  • Your spouse or civil partner has an annual income between £10,601 and £42,385

How to Apply

If you think this will apply to you then you can register on line at:

You can register at any point during the tax year and will still be entitled to the full benefit of the allowance.

The spouse who does not utilise their personal allowance should apply online using the above link to then transfer their personal allowances to their spouse. HMRC will then inform the couple of their new adjusted tax codes.

Currently the only way to apply for this allowance is via the internet. You cannot apply via the post or over the phone. It is expected that this could cause potential problems for people who do not have internet access or who are elderly.

Xero certified Accountant and ICAEW Chartered Accountant

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