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Are you claiming the marriage allowance

27 June 2024

The marriage allowance can be claimed by married couples and those in a civil partnership and where a spouse or civil partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax.

Married couples and those in a civil partnership can claim the marriage allowance if one spouse or civil partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax. In other words, one of the partners must currently earn less than the £12,570 personal allowance for 2024-25.

 

Maximising Benefits with the Marriage Allowance

The allowance allows the lower earning partner to transfer up to £1,260 of their personal tax-free allowance to their spouse or civil partner. However, you can only use the marriage allowance when the recipient of the transfer (the higher earning partner) does not pay more than the basic 20% rate of income tax. This typically means that their income is between £12,571 and £50,270 during 2024-25. For those living in Scotland, this typically means income between £12,571 and £43,662.

By using the allowance, the lower earning partner can transfer up to £1,260 of their unused personal tax-free allowance to a spouse or civil partner. This could result in a saving of up to £252 for the recipient (20% of £1,260), or £21 a month for the current tax year.

If you meet the eligibility requirements and have not yet claimed the allowance, you can backdate your claim as far back as 6 April 2020. This could result in a total tax break of up to £1,260 if you can claim for 2020-21, 2021-22, 2022-23, 2023-24 as well as the current 2024-25 tax year.

Couples can use HMRC’s online Marriage Allowance calculator to find out if they are eligible for the relief. You can then apply online at GOV.UK.

In conclusion, the Marriage Allowance is a significant tax relief for eligible couples. It aids in mitigating the tax burden and fosters financial collaboration between partners. It’s crucial to note that the benefits extend beyond the current year’s savings, with the potential to backdate claims and maximise benefits. Don’t overlook this opportunity. Verify your eligibility and submit your application today.

Source: HM Revenue & Customs Mon, 24 Jun 2024 00:00:00 +0100

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