Unlock partners tax allowance or reduce amount payable?

DavidGiant

I live with my partner and 2 children. We are not married. She is a stay at home mum. I make £35k a year.

Is there a way to unlock her tax free allowance? It seems ridiculous that there is an unused tax allowance of £10k just sitting there while the whole family is making use of my salary.

Your_Hero

Not currently. But from April 2015, it is proposed that married couples can transfer 10% of the personal allowance (around £1,000 in 2014/15 terms) to the spouse/civil partner provided that they are not higher rate or additional rate tax payers.

CLAPTON

Your_Hero wrote: »

Not currently. But from April 2015, it is proposed that married couples can transfer 10% of the personal allowance (around £1,000 in 2014/15 terms) to the spouse/civil partner provided that they are not higher rate or additional rate tax payers.

so a married couple could be 200 per year better off

redpete

blondebubbles wrote: »

No there is currently no way to do this.

Apart from putting all interest-bearing taxable accounts in her name so the interest come under her allowance and not yours.

melbury

I don't see why the Government won't let you transfer all of the unused allowance to a spouse/partner provided they are not higher rate taxpayers.

It seems very mean that a lump of an individuals personal allowance is just completely wasted, especially if only one of you is working and could really do with some extra money.

purdyoaten

melbury wrote: »

I don't see why the Government won't let you transfer all of the unused allowance to a spouse/partner provided they are not higher rate taxpayers.

It seems very mean that a lump of an individuals personal allowance is just completely wasted, especially if only one of you is working and could really do with some extra money.

There are many 'unfair' discrepancies in the financial world ( there is no widower's pension,for example) - life goes on!

zagfles

melbury wrote: »

I don't see why the Government won't let you transfer all of the unused allowance to a spouse/partner provided they are not higher rate taxpayers.

It seems very mean that a lump of an individuals personal allowance is just completely wasted, especially if only one of you is working and could really do with some extra money.

It's a political decision.

The Tories have generally been in favour, but Mrs T was dead against (she saw it as working class working women subsidising ladies who lunch).

Then the aim turned towards lowering the basic rate of tax in the Major years with his 20% target, so all tax cuts targeted the basic rate rather than allowances.

Then in the Labour years, parents staying at home to look after their own kids didn't fit in with the New Labour approved lifestyle, so they pumped money and tax incentives into childcare instead.

McKneff

It is the OP's partners choice to 'waste' it though. surely.


The partner could get a job and 'use it up' plenty of mums work and bring up a family....

xylophone

( there is no widower's pension,for example)

I'm not sure what you mean by this?

With regard to current state pension rules

http://www.pensionsadvisoryservice.org.uk/state-pensions/death-benefits
there is some provision for widowers.

Occupational pensions make provision for widowers?

example http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Survivor_Benefits_-_Member_FAQs.pdf

https://www.cans.org.uk/notes/social-security/pensions/occupational-pension-schemes-contracting-out-of-the-state-scheme/4-accrued-minimum-pension-for-widows-widowers-and-surviving-civil-partners

Spidernick

Many years ago, in the days of the Married Couples' Allowance, there used to be an equivalent amount paid to widows for the year their husband died and the following year. This was only ever available to widows (so not widowers) from memory. Perhaps this is what purdyoaten meant?

purdyoaten

Spidernick wrote: »

Many years ago, in the days of the Married Couples' Allowance, there used to be an equivalent amount paid to widows for the year their husband died and the following year. This was only ever available to widows (so not widowers) from memory. Perhaps this is what purdyoaten meant?

Indeed - perhaps I should remember that xylophone may not be as old as I am!