From April 2015 an individual will be able to transfer £1,000 of their personal allowance to their spouse or civil partner. In order to make the transfer both parties must not be higher rate tax payers (this being assessed prior to the transfer). This will benefit those on lower incomes such as families where one partner works only part time, or elderly couples where the one person has a private or work pension as well as their state pension and the other has only a small income.
The requirements for this have now been set out as follows:
– you must be in a marriage or civil partnership
– you must have an annual income of less than £10,600 (including pensions, savings and investments)
– your spouse or civil partner must have an income between £10,601 and £42,385
– you must be both be born on or after 6 April 1935.
The method of claim will be via PAYE coding notices although for the 2015/16 tax year this has not been accomplished prior to the start of the tax year.
An online registration process has been set up by HMRC and if you would like to apply for the allowance you should register your interest at www.gov.uk/marriageallowance. They will the contact you to make the application in due course. You cannot register for this allowance by telephone with HMRC.
Those who do not register via this route will be given a further opportunity to register later on in the tax year.