Marriage Allowance

polymaff

njb55rtd wrote: »

I just wish that I could see that interpretation somewhere in official writing!

The trouble with legislative documentation is that it is not kept up to date. I'd planned to reply to you with a collage of the Income Tax Act 2007 - as amended - but I'd rather try to get it right than to post immediately and have to retract. Even then ITA 2007 s55, as amended, which is the legal framework for MAT, is definitely not reflected accurately in HMRC's implementation.


If you've got the time, it might be interesting to do the same again, but with no savings and either £2,000 and £2,001 of dividend income.


It is crazy that one needs to carry out this sort of what-iffing with their SA system to guess at what their processes really are. You may still not be right even after significant experimentation, but worse, what applies one year may not be repeated next year.

Dazed_and_confused

Hello all.

The three scenarios posted by njb55rtd are what I would expect the outcome to be and irrespective of whether the dividend income is on top of the income in the existing scenarios or replaces the savings income then I think the outcome will be,
1). No MA credit due
2). No MA credit due
3). No MA credit due

All because of a line in the legislation about what happens if there is dividend income at the dividend nil rate but which if the dividend nil rate did not exist would be taxed at the dividend higher rate.

Annoyingly I cannot find that version of the legislation (am sure it wasn't in the original legislation).

jimmo

Dazed_and_confused wrote: »

All because of a line in the legislation about what happens if there is dividend income at the dividend nil rate but which if the dividend nil rate did not exist would be taxed at the dividend higher rate.

Annoyingly I cannot find that version of the legislation (am sure it wasn't in the original legislation).

S5(6)(b) FA2016
http://www.legislation.gov.uk/ukpga/2016/24/section/5

Dazed_and_confused

Thank you jimmo

(6)In section 55B(2) (transferable allowance: conditions for entitlement to tax reduction)—

(a)in paragraph (b) (individual liable to tax only at certain rates), after “the basic rate,” insert “ the dividend nil rate, ”, and
(b)after paragraph (b) insert—

“(ba)if for the tax year the individual is liable to tax at the dividend nil rate, the individual would for that year neither be liable to tax at the dividend upper rate, nor be liable to tax at the dividend additional rate, if section 13A (dividend nil rate) were omitted,"

polymaff

I must admit that I can't find any amendment to the ITA - and that is the way around I've been looking - that applies a para (ba) approach to taxable savings and the MAT.

jimmo

polymaff wrote: »

I must admit that I can't find any amendment to the ITA - and that is the way around I've been looking - that applies a para (ba) approach to taxable savings and the MAT.

S4(8) FA2016
http://www.legislation.gov.uk/ukpga/2016/24/section/4

In case it helps, when looking at the original legislation on legislation.gov.uk (in this case obviously S55B ITA2007) click on "View outstanding changes"
Then click on "More" on Changes and effects yet to be applied". The rest is just donkey work going through the listed changes.

polymaff

polymaff wrote: »

I must admit that I can't find any amendment to the ITA - and that is the way around I've been looking - that applies a para (ba) approach to taxable savings and the MAT.

jimmo wrote: »

S4(8) FA2016
http://www.legislation.gov.uk/ukpga/2016/24/section/4

In case it helps, when looking at the original legislation on legislation.gov.uk (in this case obviously S55B ITA2007) click on "View outstanding changes"
Then click on "More" on Changes and effects yet to be applied". The rest is just donkey work going through the listed changes.

Yes, I know that but my post asked about a specific topic that this donkey has failed to find.

Lawrence37

We have just applied for marriage Tax allowance, told we would be getting £600+
Just got my cheque to find they have deducted £300 for admin and processing fee (£249) and 20% tax (£49)

Is this right!?!? Does everyone else claiming , affected with these deductions

sheramber

Lawrence37 wrote: »

We have just applied for marriage Tax allowance, told we would be getting £600+
Just got my cheque to find they have deducted £300 for admin and processing fee (£249) and 20% tax (£49)

Is this right!?!? Does everyone else claiming , affected with these deductions

These deductions would be what a third party claim would entail.

Either you claimed through a third party website or you have previously used a third party and there is a mandate on your records for repayment to go to them.

This mandate applies until it is cancelled.

Jami74

Lawrence37 wrote: »

Just got my cheque to find they have deducted £300 for admin and processing fee (£249) and 20% tax (£49)

:eek:

We applied the beginning of last year through the HMRC website and I'm pretty sure the money went directly into our bank. There weren't any deductions. Seems odd to pay tax on a tax rebate.