Possible tax relief

2014

Does any one have any idea on the proposed amount one partner can transfer to the other at the end of this tax year for tax relief ?
I understand it is just in the pipeline but I am trying to do some financial planning ahead regarding combinations of both pension and earnings !!

Possible figures anyone ?

atush

I thought you could transfer 1K of your PA but nto to a partner, must be a spouse?

2014

The information I have been given is that I cannot transfer any part of my unused tax allowance to my husband at present but possibly next year under a new ruling.

kwikbreaks

I checked because it's of interest to me too.

I read PA 2015-16 is £10,500 and the transfer allowed is 10% of unused allowance - £1,050.

What is strange is that I couldn't find anything to suggest just how you go about telling the IR you wish to take advantage of this. I can't see them being smart enough to handle it automatically.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264431/3._Transferable_tax_allowances_for_married_couples.pdf says it starts in 2015-16. The £1,000 mentioned has since been increased - it was 10% of the £10,000 PA at the time.

xylophone

What is strange is that I couldn't find anything to suggest just how you go about telling the IR you wish to take advantage of this. I can't see them being smart enough to handle it automatically.

According to the link

"Operative date
This measure will have effect from the 2015-16 tax year, commencing 6 April 2015.
Further details on making claims will be set out in due course. "

Which means when HMRC are good and ready?;)

kwikbreaks

Yes I knew that as I read the content. That link was to a document detailing a 2013 change so I would have expected there would at least be some mention on the IR website by now but a search there showed up diddly squat for me.

I'm expecting it will be a re-claim you make at year end because until then the unclaimed allowance isn't known in theory although most people using this option will probably know full well if there will be £1050 unused. In other words another reason you have to complete a tax form... I suspectit costs as much to collect as they actually get from an awful lot of folks.

xylophone

That link was to a document detailing a 2013 change [/QUOTE


"This measure was confirmed on 5 December 2013."

Seven months? Barely a nanosecond in HMRC time (unless they're chasing an underpayment..........):rotfl:

2014

I am still a little confused.
Can some one give me an example in figures please ?

kwikbreaks

Assuming your other half doesn't use all of their allowance and you are paying basic rate tax then 10% of their personal allowance can be transfered to you. If either of those are not true you can forget it.

OK so unless you are taliking about somebody very old the personal allowance will be £10,500 in 2015-16 meaning the recipient can get an additional £1,050 personal allowance. Assuming the recipent is paying tax on more than that then they will avoid tax amounting to a saving of 20% (basic tax rate) of £1,050 or £210.

2014

So would I be correct in assuming if one partner worked earning £8000.
The amount that could be transferred would be 10% of the remaining £2500 is this correct ?

greenglide

No.

Provided that one partner earns less than £10,500 then they can give the balance of the allowance to the other partner up to £1050.

What happens if the donor earns, say, £10,000 is unclear. It may be that only obvious claims will be allowed if the donor is clearly below or the adjustment is only expected retrospectively via self assessment.