If you’re married or in a civil partnership and one of you has some unused personal allowance, you’ll be able to apply for the new marriage allowance if you were born after 6 April 1935. This will give couples a tax saving of £212 for 2015/16. It works by transferring £1,060 of unused tax allowance from one spouse or civil partner to the other. So it’s not an extra amount of tax-free allowance, but a reallocation of existing entitlement. Once it’s transferred, the allowance then belongs to the recipient for the entirety of that tax year.
To make a claim, the person who’s giving up part of their allowance must apply through the gov.uk website. Your PAYE codes will then change, and you’ll see the following suffix letters will be in place of L:
– M – for the person who receives the extra allowance
– N – for the person who has surrendered £1,060 of their personal allowance
If you were born before 6 April 1935, the existing married couple’s allowance of up to £835.50 will still apply.
If you’d like some more information on the marriage allowance process or any help at all with your claim, just give us a call on 01782 279615.