Marriage Allowance after retiring

amblonia

My wife does not work so for the past few years I've been receiving 10% of her personal tax allowance in addition to my own.


When I retire at the start of the new tax year in April, will this marriage allowance be deducted from my PTA and reverted to hers, giving us both the £12,500 annual tax allowance?

Dazed_and_confused

What is PTA?

But no, it won't make any difference.

The only time it would change is if either you or your wife were deemed liable to higher rate tax or one of you asked HMRC for it to be cancelled.

amblonia

Dazed_and_confused wrote: »

What is PTA?

But no, it won't make any difference.

The only time it would change is if either you or your wife were deemed liable to higher rate tax or one of you asked HMRC for it to be cancelled.

PTA = Personal Tax Allowance.


Ah ok, thanks for that. I just automatically assumed that once I become a non-earner, I'd lose the extra 10% allowance.

Dazed_and_confused

Marriage Allowance isn't an extra tax free allowance, it entitles you to a tax deduction of upto £250 off your income tax liability (in the current tax year).
NB. Your tax code may include it as an allowance but that is just a provisional attempt to collect the correct amount of tax.

Your wife is eligible to apply as long as she isn't deemed to be a higher rate payer.

You are eligible to receive it as long as you aren't deemed a higher rate payer.