Announced in 2013, the Marriage Allowance is a much sought-after tax break for married couples (or couples in a civil partnership), with online registration to receive the allowance having opened last month.
From 6 April 2015, over four million married couples and 15,000 civil partners across the country will become eligible for the Marriage Allowance tax break, allowing a spouse or civil partner that doesn’t pay tax (receiving no income, or income below the £10,600 tax-free threshold) to transfer 10% (£1,060) of their tax-free allowance to their higher-earning spouse or partner, so long as they don’t earn above the basic tax band, currently set at £42,385.
How to Apply
The Government wishes for those interested in receiving the Marriage Allowance tax break to first register their interest online, so long as you meet the eligibility criteria detailed above. It should be noted that if you or your spouse/civil partner were born before 6 April 1935 you should instead apply for the Married Couples Allowance.
When you head to the Marriage Allowance online portal you’ll be asked for your name and email address, through which the Government promise to contact you when you can apply.
From 6 April 2015 HM Revenue and Customs (HMRC) will begin sending out invitations to those who have previously registered their interest in applying for the Marriage Allowance. HMRC advise that applicants will be invited to register in stages; so don’t worry if it takes a while for you to receive your invitation. There’s no disadvantage to registering late: so long as you apply during the 2015 to 2016 tax year, eligible applicants will receive the full tax break.
The Marriage Allowance Registration Announcement
Speaking on the opening of the Marriage Allowance’s registration phase last month, Chancellor of the Exchequer George Osborne commented that the new tax break will save most qualifying couples up to £212.00 on their annual tax bill. Speaking at the same event, Prime Minister David Cameron focused on both the economic and family-driven benefits of the allowance, saying:
I made a clear commitment to the British people that I would recognise marriage in the tax system – so I am delighted that we’re just a little over a month away from it coming into effect. We can afford to do it because of the growing strength of the British economy. And as a result, it means families up and down the country can get a little bit of extra support and more financial security.
Mr Cameron continued:
But this policy is about far more than pounds and pence. It’s about valuing commitment. Families are the bedrock of our society. It is families who raise our children, look after our old and keep our country going. And this tax change is about saying as a society, we recognise that.
Experienced Accountants
To speak with a professional to discuss your eligibility for the Marriage Allowance tax break, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.