All tax payers will benefit from the raising of the tax free
personal allowance. We knew it was climbing to 10,600 in April 2015 but
the Chancellor has revealed it will rise to 10,800 in April 2016 and £11,000 in
April 2017.
From 6th April, married couples and civil partners who earn
less than the £10,600 income tax personal allowance for 2015/16 will be
able to transfer £1060 of their allowance to their spouse, so long as the
recipient doesn't pay higher rate (40%) or additional rate (45%)
tax.
This also applies where the higher earner is self employed
and it means that together a couple will pay less tax.
The plans were first announced in in 2013 and published in
the Budget 2014. While they don't come into force until 6th April, from today
couples can register their interest online via the Marriage allowance site.
Anyone registered will then be contacted by HMRC to ask
whether they want to apply. People can register at any point in the tax year
and will still receive the benefit of the allowance.
To be eligble, couples must both be born on or after 6th
April 1935 and the recipient of the personal tax free allowance must have an
annual income of between £10,601 and £42,385 during the 2015/16 tax year.
In order to receive the tax break, one person in a couple
will apply online to transfer the allowance to their spouse or civil partner
and HMRC will tell the recipient about the change to their tax code.
If you need help, email andrewlogan@taxassist.co.uk and
we will send you the link to get registered.
