Transferring tax relief to partner

vacheron

zygurat789 wrote: »

Here is the link saying basic rate tax. It just goes to show that .Gov are just totally inco,petant

https://www.gov.uk/government/publications/transferable-tax-allowances-for-married-couples-and-civil-partners

Well I sent an e-mail to the "Further advice" contact on the last page 1 week ago, but have had no response at all.

Public Servants.... yeah right!

Dear Mr Thomas.

I hope you don't mind me contacting you.

I obtained your contact details from a document entitled "Transferable tax allowances for married couples and civil partners" located at:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293790/TIIN_2518_transferable_tax_allowance_for_married_couples_and_civil_partners.pdf

I have a query regarding the proposal which appears to be contradicted in recent HMRC statements websites such as:
https://www.gov.uk/marriage-allowance


Your document (and others) states that the allowance can be received by "basic rate taxpayers", however the recent registration website specifically states that the recipient must have "an annual income of between £10,601 and £42,385".


My questions is:

What would happen in the event that someone was a basic rate taxpayer earning say £42,350 (£35 below the higher tax threshold) who successfully qualified for the £1050 extra allowance bringing their new higher rate tax threshold to £43,435

If they were then to receive a £1000 pay rise bringing their gross salary to £43,000 they would exceed the limit stated in the registration website, but would still be basic rate taxpayers (thereby meeting the requirements of your document).


Would you be able to clarify whether or not the person on their new £43,000 salary would remain eligible for the allowance transfer for this year (and indeed for subsequent years)?


Regards and thanks:

........

I'm also wondering if we will see the same confusion with the recent tax-free savings allowances of £1000 for "basic rate taxpayers" which then drops to £500 for higher rate payers.

What happens to those currently £750 under the higher threshold, with £1000 of interest income taking them £250 into the higher tax band? If you subtract their £500 interest allowance they then become basic rate taxpayers, so are they then immediately eligible for a further £500 reduction? :undecided

blinkmck

Is this applicable when a spouse is doing a funded PhD?

My wife gets a tax free stipend of around £14k for her Phd, and I earn under £40k, so can her tax allowance be transferred to me as the stipend is not considered taxable income?

vacheron

Blinkmck wrote: »

Is this applicable when a spouse is doing a funded PhD?

My wife gets a tax free stipend of around £14k for her Phd, and I earn under £40k, so can her tax allowance be transferred to me as the stipend is not considered taxable income?

It sounds like it would be OK in principle as the site says:

• you have an annual income of less than £10,600 - including pensions, savings and investments

zygurat789

>.gov appear to have backed down

https://www.gov.uk/government/publications/issue-briefing-marriage-allowance/issue-briefing-marriage-allowance

vacheron

zygurat789 wrote: »

>.gov appear to have backed down

https://www.gov.uk/government/publications/issue-briefing-marriage-allowance/issue-briefing-marriage-allowance

Well spotted!

As long as the person receiving the transfer doesn’t pay tax at the higher or additional rate (for most people that’s an income of £42,385 or below),

Well, the way I am going to choose to read this is that as long as I am not paying any higher rate tax at the end of the 2015-16 tax year I will remain eligible.

zygurat789

What they are saying is that most people do not make private pension payments, wash their uniform at home or have any benefits in kind taxed on their code number. Ie most people have a code number of 1000L this year.
Maybe maybe not

molerat

Mrs M had this e-mail today

Thank you for taking the time to register for Marriage Allowance. This new allowance starts from April, and you will be one of the first couples to be invited to apply online. We will send you an email when the application system is up and running, and give you all the information you'll need.
To apply for Marriage Allowance online, you will need to confirm your identity through the Government's 'Verify' service. For this you'll need a valid UK passport or UK photocard driving licence, along with information about your finances such as a recent credit card or mortgage statement.
This email is just to keep you up to date, so there is no need to contact us.

Ruth Owen
Director General, Personal Tax
HMRC

Looks like an on line application is out of the question then. She already has a Gov Gateway ID so why that will not suffice I don't know

le_loup

I don't think that it means that you have to send copies of the documents ... not that I know!

molerat

le_loup wrote: »

I don't think that it means that you have to send copies of the documents ... not that I know!

?? but you need a current passport or photocard driving licence to verify ID.

vacheron

molerat wrote: »

?? but you need a current passport or photocard driving licence to verify ID.

A few months back I applied for my photo-card driving license online they asked if they had my permission to use the verify service.

They asked for my passport number and identified me from that. They also then said that they could use the photograph and signature from the passport and apply it straight to my driving license.

Result: nothing to send them!

I was quite amazed at the time as it was a simple thing to do and therefore the last thing I expected from a government department!