1 million couples can still claim £900 tax refund

The marriage allowance allows couples to share part of their personal tax-free allowance in certain circumstances. The marriage allowance is available to married couples and those in a civil partnership where one partner has an unused personal allowance and their spouse/partner only pays Income Tax at the basic rate.

HMRC has published a press release to remind eligible taxpayers to apply for the allowance and benefit from a tax refund of up to £900. Although 3 million couples have already applied for the allowance, it is estimated that there are still a further 1 million married and civil partnered couples who are eligible for the allowance but have not applied.

For 2018-19, the lower earning partner can transfer up to £1,190 of their personal tax-free allowance to a spouse or civil partner.

Couples that have not yet claimed the allowance can backdate their claim as far back as 6 April 2015 if they meet the eligibility requirements. This could result in a saving of up to £662 for 2015-16, 2016-17 and 2017-18 and a further £238 for the current tax year. Couples have up to four years to claim backdated annual allowances.

An application for the marriage allowance can be made online or by telephone. The application must be made by the non-taxpayer who is transferring their allowance. To benefit as a couple, the non-taxpayer needs to earn less than their partner and have an income of £11,850 or less in 2018-19.

Posted in Income Tax

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login

Forgot Password?

Latest News

SDLT payment deadline to be reduced

Stamp Duty Land Tax (SDLT) is a tax that is generally payable on the purchase or transfer of land and …
Read More

UK Living Wage rates rise

The Living Wage Foundation (an initiative of Citizens UK) recently announced Living Wage rates for London and the UK at …
Read More

Foreign currency considerations

There are special rules that must be considered when buying and selling assets in foreign currency. This is sometimes known …
Read More