Marriage Allowance

Dazed_and_C0nfused

Jonty6262 said:

Dazed_and_C0nfused said:

Jonty6262 said:

I tranfered the 10% married allowance to my partner and its been that way for the last few tax years. If I remove the transfer and put it back on my allowance using my online account today (17th September 2023/24 tax year) will my partner and I automatically keep the current tax allowances until the start of 2024/25 tax year? We are still together. 

Yes, that's the standard procedure.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Thank you, does the same procedure take place if a partner gives you 10% of their allowance? For clarity if they give you 10% today(17th september tax year 2023/24)does that only come into effect from start of 2024/25 tax year or in that scenario would it be backdated to the start of this current tax year(2023/24)?

When applying I believe you get the option to choose which tax year it is applicable from and I don't think a future tax year is one of the options.

zagfles

I got asked this question which I couldn't answer. None of the guides on MAT I've googled are any help.

Situation is:

MAT transfer done years ago, wife to husband.

Husband's pay this year looks like exceeding the HRT. Wife drawing down a SIPP up to remaining PA ie £11310.

Wife went online and cancelled the MAT but that only applies for next tax year, seems you can't cancel it for this tax year except in limited circumstances, change of income not being one.

I mentioned the obvious ways to keep husband out of HRT ie pension conts, gift aid etc. 

But what they asked is - if husband exceeds HRT, and so isn't entitled to receive the MAT, does that mean wife gets the full tax allowance back this tax year? ie could she drawdown an extra £1260 from her SIPP this year and not get taxed on it? 

Clearly she would get taxed initially but would she then get a refund when the husband's tax is finalised and the it's clear he's not eligible to receive the MAT. Or would the wife's 10% allowance be completely lost?

Jeremy535897

If the MAT is invalid due to the husband being liable to HRT, then the transfer is cancelled, so the wife receives the full personal allowance. Section 55B(6) ITA2007, the provision which reduces the transferor's allowance, only applies if the transferee is entitled to receive the allowance by virtue of section 55B(1), and that subsection is disapplied here by section 55B(2)(b).
https://www.legislation.gov.uk/ukpga/2007/3/section/55B

Dazed_and_C0nfused

But what they asked is - if husband exceeds HRT, and so isn't entitled to receive the MAT, does that mean wife gets the full tax allowance back this tax year? ie could she drawdown an extra £1260 from her SIPP this year and not get taxed on it? 

Yes.  If husband isn't eligible the wife will ultimately get the full Personal Allowance (once the husband being ineligible is determined after 5 April).

If they wish to have Marriage Allowance in place for future years I think a new application would be needed.

magic99

My wife is on state pension but also has attendance allowance. Do they both get added together to form her taxable income?

[Deleted User]

magic99 said:

My wife is on state pension but also has attendance allowance. Do they both get added together to form her taxable income?

No - attendance allowance is not taxable income. 

mhdazeem

I never expected to find myself using this site, but I've been pleasantly surprised. It's truly a treasure trove of information. I stumbled upon the Marriage Tax Allowance, something I had no clue about before. Now, I've received a £512 refund for the past two years, and I'm eagerly awaiting the outcome for the 2023/2024 tax year. I'm grateful for the assistance provided here and commend the valuable service you're offering to the public. Hats off to you!

mhdazeem

LindaAnne_2 said:

I cannot find the link on the Ugov site to Verify me before I can continue with the marriage allowance application.
Where is it?

Fabulous details about what it is and how it works but where where is the link to use It????

😱😱😱😱😱😱😱😱😱

Have you registered yourself to the Government Gateway website. They usually ask you to verify yourself via Passport and visual or Payslips. This is pretty straightforward. Please register there and you will find out:

Use Create sign in details to register. 

sheramber

mhdazeem said:

LindaAnne_2 said:

I cannot find the link on the Ugov site to Verify me before I can continue with the marriage allowance application.
Where is it?

Fabulous details about what it is and how it works but where where is the link to use It????

😱😱😱😱😱😱😱😱😱

Have you registered yourself to the Government Gateway website. They usually ask you to verify yourself via Passport and visual or Payslips. This is pretty straightforward. Please register there and you will find out:

Use Create sign in details to register. 

I doubt you will get an answer to a post from June 2015.

nk2020

My wife and I have used the Marriage Allowance over the last 8 years or so.  This was from when she was a very low earner.  However, her PAYE income has been over the threshold for a number of years now, yet the Allowance has never been stopped (either by us or by HMRC).  Therefore, my understanding is that she will have overpaid tax (i.e. her personal allowance will have been too low), and I will have underpaid tax (i.e. my personal allowance will have been too high)

If any underpaid tax would be recovered through a tax code change the following year, any overpaid tax would also be repaid through a tax code change, right?  So our overpayments/underpayments will net off?