Marriage Allowance amount

teddysmum

A person has income below £10600 and chooses to use the Marriage Allowance to increase their spouse's tax allowance. If they earn more than 90% of the £10600, do they donate the whole £1060 (10%), thus needing to pay a little tax or is there an option to transfer less ? (I think the former is the case).

zagfles

I don't think there's an option to do a partial transfer, but unless the spouse you're transferring to earns under £11660 it won't make a difference to the total tax you pay whether you do a partial or full transfer.

I guess if one earns £10,000 and the other earns £11,000 it would be a bit of a bummer not being able to do a partial transfer...

teddysmum

I didn't think there was an option, but there have been references to transferring up to £10060.


I'm assuming that , as the transfer stays in place until 'repossessed ' it will be automatically upgraded to 10% of the next personal allowance value.

p00hsticks

teddysmum wrote: »

I didn't think there was an option, but there have been references to transferring up to £10060.

You have an extra zero in there - it should be '...up to £1060'

teddysmum wrote: »

I'm assuming that , as the transfer stays in place until 'repossessed ' it will be automatically upgraded to 10% of the next personal allowance value.

Correct

teddysmum

p00hsticks wrote: »

You have an extra zero in there - it should be '...up to £1060'

Whoops; slip of the typing finger and I'm a maths graduate, too.:rotfl: