Page 16 - Addition Autumn 2017
P. 16

THE MARRIAGE ALLOWANCE:
CHECK YOUR ELIGIBILITY
With recent research revealing that more than 2.9 million couples in the UK have yet to claim the Marriage Allowance, we review the key features of the initiative and highlight how you could stand to bene t.
Introduced in April 2015 by the former Chancellor, George Osborne, the Marriage Allowance permits eligible spouses
to transfer 10% of their personal allowance to their partner. However,  gures from HMRC have revealed that of the alleged 4.2 million couples eligible for the tax break, only around 1.3 million have actually claimed it.
The Marriage Allowance is only available to couples where neither pays tax at the higher or additional rate. Therefore, the couples most likely to bene t are those where one of the spouses has little or no income
and the other spouse is earning between £11,501 and £45,000 (£43,000 for those in Scotland).
What are the  nancial bene ts?
For 2017/18 the personal allowance is set at £11,500, meaning eligible taxpayers can transfer £1,150 to their spouse - reducing their tax liability by up to £230 in the current tax year.
However, it is possible
to backdate a claim for
the Marriage Allowance
to include any tax year since 6 April 2015 that the couple was eligible for the tax break. The tax bill of a recipient of the Marriage Allowance was reduced by up to £212 in 2015/16 and £220 in 2016/17. As a result, eligible couples who have so far failed to claim the relief may be owed a tax repayment of up to £432!
How do I apply?
Couples are able to register
for the Marriage Allowance at www.gov.uk/marriage- allowance. If the application is successful, any changes to your personal allowances will be backdated to the beginning of the tax year. HMRC will refund those with successful applications by either changing their tax code, or by altering their Self Assessment Tax Return (if they are self-employed).
In future years, barring the cancellation of the allowance or a change
in circumstance, the allowance will transfer automatically to the spouse – meaning an ongoing reduction in the annual tax bill of more than £200.
For more information on the Marriage Allowance, please contact us.
NEWSLETTERS
Current and back issues of Addition and Agricultural Addition can be found on our website.
ON-LINE ACCOUNTANCY PACKAGE
DOWNLOAD OUR APP
CONNECT WITH US ON
Simpkins Edwards is a Limited Liability Partnership registered in England and Wales with number OC352993. It is registered to carry out audit work in the UK and Ireland, regulated for a range of investment business activities and licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the Institute of Chartered Accountants in England & Wales. Details of our probate accreditation can be viewed at icaew.com/probate under reference number C002500802. The term partner is used to refer to a member of Simpkins Edwards LLP. Registered office: Michael House, Castle Street, Exeter, Devon, EX4 3LQ. VAT No. 141691769.


































































































   12   13   14   15   16