Possible tax relief

kwikbreaks

greenglide wrote: »

What happens if the donor earns, say, £10,000 is unclear.

It looked clear to me that any unused allowance could be transferred so if in 2015 someone earned £10,000 they would be able to transfer £500 of allowance to their partner - so long as the partner was only a basic rate tax payer.

To my mind this is a pretty poor start but at least it is a start. Any benefits are based on joint earnings. To my mind taxation should work exactly the same way if partners agree on that. Pooled allowances against the pooled incomes would be the fair way to do it rather than some minor shuffling. I suspect many couples will have the situation I will be getting when I start to draw state pension - I have a fairly small private pension and all but about £5k of that will be taxed. My wife has only the state pension leaving maybe £4 - £5,000 of her allowance unused. In theory she has a low enough income to claim state benefits but can't because of my pension. If our joint incomes and allowances were pooled we'd have a far smaller tax bill.

2014

Thanks for replies. That is certainly helping me financial plan.