Marriage allowance

robin61

Regarding the nil or low earning partner transferring £1060 personal allowance to their spouse providing the recipient earns under £42,385

Could anyone tell me how the earnings of the spouse is calculated for the purposes of this scheme if the spouse is paying into a private pension such as a SIPP I.e. is it the adjusted net income as described here that counts.

https://www.gov.uk/guidance/adjusted-net-income


Thanks.

Darksparkle

It's based on the taxable income.

Froglet

Does anyone know if by transferring this allowance actually means my husband won't pay any tax at all,that that is ok.It will be borderline ,and may well reduce his liability for at least the first year.

molerat

Yes no problem at all.

Dazed_and_confused

Froglet wrote: »

Does anyone know if by transferring this allowance actually means my husband won't pay any tax at all,that that is ok.It will be borderline ,and may well reduce his liability for at least the first year.

One problem could occur, if he ended up paying no tax at all and has made gift aid donations in the same tax year then he will have to pay an amount to the tax people equal to the tax the charities have reclaimed from his donations.

Froglet

Dazed_and_confused wrote: »

One problem could occur, if he ended up paying no tax at all and has made gift aid donations in the same tax year then he will have to pay an amount to the tax people equal to the tax the charities have reclaimed from his donations.

At present,since he retired 3 years ago and has managed on a private pension,he does not pay any tax.He has deferred his state pension but when he does take it he will be just over the tax threshold.So he has not gifyaided donations sor quite some time.


Thanks for the advice though.I just wondered if by reducing the allowance so he pays no tax would make him ineligible.


Thanks Molerat also.