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  • FIRST POST
    • Be Happy
    • By Be Happy 16th Sep 17, 5:27 PM
    • 1,126Posts
    • 493Thanks
    Be Happy
    Married Couples Allowance after death
    • #1
    • 16th Sep 17, 5:27 PM
    Married Couples Allowance after death 16th Sep 17 at 5:27 PM
    I can usually understand financial affairs, but this tax query is really puzzling me. Can anyone help?

    My husband died last month. He was born in 1930 and was claiming the married couples allowance. I've read that this continues for the tax year and seems to transfer to my tax code in some way. However I've just received a new Tax Code Notice (due to an increase in my State Pension) which does not mention this.

    I phoned HMRC today to query and was told that this allowance would have nothing to do with my tax records, but at the end of the 2017/2018 tax year my husband's tax records would be checked to see if he was due a refund. The agent I spoke to was very unsure, leaving me on hold while he checked the information several times.

    (As a side issue, do I have to wait until May next year to see if there is any tax refund to enter into my husband's estate? Surely not!)

    His earnings (State pension and 3 employment pensions) during this tax year have been £9,944 and he has paid £725 in income tax.

    His Tax Coding notice for this year (received in March) gave the following info:

    Personal Allowance £11,500, Married Couples Allowance £4223, Total £15,723

    Less State Pension £10,130, Less Underpayment Restriction £257

    Total tax-free amount £5,336.

    Any thoughts please on:

    A Will there be a tax refund?
    B Do I really have to wait until next May to find out?
    C What happens about the Married Couples Allowance?

    Thanks for any input.
Page 1
    • Dazed and confused
    • By Dazed and confused 16th Sep 17, 5:40 PM
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    Dazed and confused
    • #2
    • 16th Sep 17, 5:40 PM
    • #2
    • 16th Sep 17, 5:40 PM
    Sorry for your loss.

    The full amount is due (to your late husband) in the tax year of death.

    Nothing is transferred to your tax code by right.

    The executor of your late husband's affairs, which may of course be you, could complete HMRC form 575 to transfer any unused, for the tax year of death, Married Couples Allowance to you. If you have included details of ALL taxable income received in the tax year of death in your op then the full amount of Married Couples Allowance would be available to transfer to you.

    The estate appears to be due a repayment of £468 however there could be other tax debts not included in his current tax year ls code which may reduce this.

    You should not have to wait till next year to get this, once HMRC have all the final pension details from each former employer/pension company then they could deal with the refund if they wanted to.
    • Dazed and confused
    • By Dazed and confused 16th Sep 17, 5:44 PM
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    Dazed and confused
    • #3
    • 16th Sep 17, 5:44 PM
    • #3
    • 16th Sep 17, 5:44 PM
    On second thoughts the refund may be more, is the £257 you refer to the tax due or the restriction to his tax code?

    If it is the actual restriction then it suggests he may only owe £51.40 so the estate could get more like £675 refund (subject to any other tax debt not otherwise mentioned).
    • Be Happy
    • By Be Happy 16th Sep 17, 6:06 PM
    • 1,126 Posts
    • 493 Thanks
    Be Happy
    • #4
    • 16th Sep 17, 6:06 PM
    • #4
    • 16th Sep 17, 6:06 PM
    Thanks for really helpful reply. It looks like I'm going to have to write to HMRC and get written reply re transfer of Married Couples Allowance and query any refund due.

    The £257 Restriction relates to his previous year's tax being underpaid by £51.

    HMRC's dealings have been so different from the DWP state pension department where they had increased my OAP by £100 a week due to inherited pension within 3 weeks of his death.

    It seems to be so wrong of me to be thinking of financial affairs so soon after my husband's death, but, due to his RAF pension dying with him, even after 32 years of marriage, there has been a substantial drop in earnings. I'm not at the Pension Credit level however, so I'm still so much luckier than many.
    • Dazed and confused
    • By Dazed and confused 16th Sep 17, 8:13 PM
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    Dazed and confused
    • #5
    • 16th Sep 17, 8:13 PM
    • #5
    • 16th Sep 17, 8:13 PM
    It would probably be advisable to make it clear you are writing as executor of your late husband not as his spouse.

    I think unused Married Couples Allowance can only be transferred from husband to wife on the husband's authority so it is probably advisable for you to try to sort this as your late husband's representative as opposed to trying to claim the allowance as his spouse.

    You might just have an easier time of it then.

    And nothing wrong in getting things sorted quickly whilst everything is fresh in your mind.
    • Be Happy
    • By Be Happy 15th Nov 17, 3:10 PM
    • 1,126 Posts
    • 493 Thanks
    Be Happy
    • #6
    • 15th Nov 17, 3:10 PM
    • #6
    • 15th Nov 17, 3:10 PM
    Just a quick update for anyone else in the same position.

    As advised by Dazed and confused, I wrote as executor in September. Letter was acknowledged, but nothing else until new Tax Code arrived for me today giving full £4223 of Married Couples Allowance for me to use this tax year. Couple of weeks ago, I also received Tax Refund of £729 for my husband's estate.

    Important point is that you should ask for the MCA transfer after death, as it may not come automatically.
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