Transfer of Income Tax

Mrs_Arcanum

purdyoaten wrote: »

Your arithmetic is slightly out - 10% of 10500 (not 10050) is 1050. In any case I believe that the personal allowance will be 10600 in 2015/16 (not 2014/15) with a maximum of 1060 transferable.

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2015-16/tax-and-tax-credit-rates-and-thresholds-for-2015-16

According to the link the amount is £10,600 not £10,050, so I might be able to transfer some when the actual nitty gritty is known.

zygurat789

This is copied from the Treasury document from the autumn statement.


*6 Available to spouses/ civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount (£1,060) of their personal allowance to their spouse/ civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.

The question is who is correct, The Treasury or direct.gov.uk?

Brighty

My wife usually has earnings of between £9000-£10000, won't know how much of her allowance is left until the end of each tax year. How would this work for us? Would we sort it in our tax returns each year or some other way?


Brighty

purdyoaten

Brighty wrote: »

My wife usually has earnings of between £9000-£10000, won't know how much of her allowance is left until the end of each tax year. How would this work for us? Would we sort it in our tax returns each year or some other way?


Brighty

Can you not just transfer from your wife anyway? Even if this means that she pays a tiny bit of tax you will get the benefit of the full transferred amount.

All a bit of a mess frankly. The new code numbers for 2015/16 are now being issued to employers.

Woodenhorse

You can transfer some of you tax (£1060 works out at £212/annum) to your partners allowance if you do not use all of yours and your partner does. This applies from April 2015. Register your interest at .gov.uk/marriage-allowance[/url] and they will email you when you need to apply.
Hope this helps.
Woodenhorse.

dropthepilot wrote: »

Hi everyone

I'm pretty new to this so excuse me if I've put this in the wrong place.

I got married last year and I've heard that, starting with TY2015-16, HMRC are allowing some of your married Income Tax allowance to be transferred to your spouse.

Currently, I don't pay any tax from my income (tax code NT) and my spouse is on the standard "single person's" tax code. So, I was wondering:

1. Would I be able to transfer some of my IT allowance to my spouse without us becoming financially linked? (I remember Martin mentioning you don't have to be financially linked when married but I don't know how it applies with HMRC)

2. Would this mean I would have to complete a personal tax return every year just because if the tax transfer? And,

3. If so, what's the maximum amount I can transfer annually?

I look forward to the help anyone can provide.

zygurat789

Woodenhorse wrote: »

You can transfer some of you tax (£1060 works out at £212/annum) to your partners allowance if you do not use all of yours and your partner does. This applies from April 2015. Register your interest at .gov.uk/marriage-allowance[/url] and they will email you when you need to apply.
Hope this helps.
Woodenhorse.

If you read the quote from the Treasury it says "transfer this amount" ie 1060.
I read this to mean that you either transfer nothing or 1060. The total liability will remain constant but may be divided differently between the spouses.