HMRC is urging eligible married couples and civil partners to claim a free tax break worth up to £238 per year, as official data suggests that more than a million couples are ‘missing out’.
According to the data, nearly three million couples have claimed the Marriage Allowance to date. The allowance enables spouses to transfer a fixed amount of their personal allowance (PA) to their partner.
The Marriage Allowance is available to married couples and civil partners where one partner pays tax at the basic rate and the lower earner has an income of £11,850 or less. Where a couple is eligible, one partner is permitted to transfer 10% of their PA to the other (£1,190 for the 2018/19 tax year). Where one partner does not use all of their PA, the benefit will be up to £238 – equating to 20% of £1,190.
HMRC stated that a new online application process has made applying for the Marriage Allowance easier, and that eligible couples could receive backdated claims of up to £662, given as a lump sum.
Since March 2018, more than 300,000 couples have reportedly signed up for the allowance.
Mel Stride, Financial Secretary to the Treasury, commented: ‘This is a really important tax relief and reflects the social importance of marriages and civil partnerships.
‘I’d urge those that haven’t yet managed to claim to do so right away – it’s quick and easy to apply.’
As your accountants, we can help to ensure that you are making the most of any tax allowances or reliefs that are available to you. For advice and assistance, please contact us.