The tax year beginning April 2015 shows the introduction of a welcome tax break for married couples. In essence if either partner earns less than the current year Personal Tax Allowance (which is £10,600 in 2015/16) then they can transfer 10% of their Allowance over to their partner for use providing their partner is a basic rate tax payer.
This benefits all Married Couples and Civil Partnerships and not just those that are in business for themselves so if you are employed or self employed and your partner either isn’t employed or their earnings are below £10,600 then it could be in your interest to apply for this Tax Allowance.
Applying is easy you have to register your interest on the Gov.UK website and you will be signed up for emails keeping you informed of what and when you can claim. If you are employed your tax code will change to reflect the increased allowance so once you have registered and been accepted you don’t need to do anything else – your employer will take care of it for you. If you are self-employed it will be adjusted in your annual tax submission so you will pay less tax at that point.
Either way you will be gaining up to 10% of your partners Personal Allowance each year which gives you a tax saving of:
- 2015/16 – £212
- 2016/17 – £216
- 2017/18 – £220