Year-End Tax: Transferring Tax Allowances
Are you eligible for a £252 saving on your tax bill?
With the tax year ending on 5th April, March is a good month to check whether sharing unused tax allowances with your partner could save you some money.
HMRC says that March is the most popular month for Marriage Allowance applications. Almost 70,000 couples applied in March last year. As there is also the option to backdate their claim for the previous four tax years, eligible couples who have not previously claimed could receive a lump sum payment of more than £1,000.
Marriage allowance allows individuals to transfer up to 10% of their tax-free Personal Allowance to their husband, wife, or civil partner. For the 2023/24 tax year, this means a maximum amount of £252 could be available to those who qualify.
In order to benefit, either you or your partner must have an annual income of less than the Personal Allowance, which is currently £12,570. And the higher earning partner’s income must be between £12,571 and £50,270.
To find out if you are eligible, you can use HMRC’s online calculator by CLICKING HERE
If you need any help working out whether you are eligible or in applying for the allowance, please do not hesitate to contact us!
Folkes Worton LLP Chartered Accountants
Accounting for the Future