Partner's Tax Relief

zagfles

xylophone said:

Oh really?

Yes,really.

 https://www.twamleyandco.co.uk/factsheets/personal-tax/taxation-of-the-family#:~:text=Independent taxation means that husbands,for their own tax affairs.

Married couples and civil partners

Independent taxation means that husbands and wives are taxed separately on their income and capital gains. The effect is that both have their own allowances, savings and basic rate tax bands for income tax, annual exemption for capital gains tax purposes and are responsible for their own tax affairs. The same tax treatment applies to couples who have entered into a civil partnership under the Civil Partnership Act.

The CB situation (as many people  (including me) have argued) is an anomaly and unfair.

I see, you're playing the "snip all but 2 words and ignore the majority of the points made with another cut and paste" game. CB is not the only anomaly. The fact is, in many respects, couples are financially assessed together for some aspects of taxation, tax credits and benefits, as I've pointed out above. So the likes of the OP who think their tax code should be adjusted because of their spouses' situation aren't as daft as some people seem to think. Loads of people's tax codes are adjusted because of something to do with their spouse, such as marriage allowance, child ben charge.

Besides which, prior to 1990, independant taxation was an option, married couples could opt to be taxed independantly, so they each get a personal allowance, but with the loss of the married man's allowance. Which makes the narrative around the 1990 changes even more amusing, it was the removal of a choice, not some great progressive revolution

The real reason we have predominantly independant assessment for taxation, but predominantly joint assessment for benefits, is because that way maximises the tax take and minimises benefits. Then headline tax rates can be lower. But it's clearly hypocrisy to anyone who takes the time to think about it. The govt expects someone on a low/zero income to be supported by their spouse, or unmarried partner, but then doesn't allow them to use their tax allowance against the income the govt expects them to live on. (other than the small marriage allowance if they're married and earn under £50k).

xylophone

I see, you're playing the "snip all but 2 words and ignore the majority of the points made with another cut and paste" game. 

I am not playing any game or scoring any points. I am not denying that there are anomalies.

I am merely pointing out the fact that there is independent taxation for married people.

https://www.tax.org.uk/media-centre/blog/media-and-politics/debate-taxing-families-30-years-after-introduction-independent

You may find the above of interest.

xylophone

And as an answer to the original question 

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

Here I go again with a cut and paste (I hope useful) from https://techzone.adviserzone.com/anon/public/pensions/3rd-party-pension-conts

Tax treatment of third party pension contributions

Where a third party pension contribution is made to a registered pension scheme, the it's treated as if the scheme member had made the contribution. So it’s the member who gets the tax relief, not the contributor.
The usual tax relief limits apply - relief on contributions up to the greater of 100% of relevant UK earnings or £3,600 - and the contribution counts towards the recipient's annual allowance (and, if applicable, their money purchase annual allowance).

As the tax relief available on third party pension contributions is always based on the tax status of the scheme member:

• a third party contribution to a scheme which operates relief at source (for example, a SIPP or personal pension) will be paid net of basic rate tax and,
• if the scheme member is a higher rate tax payer, they can claim any higher rate tax relief due on the third party contribution.

zagfles

xylophone said:

I see, you're playing the "snip all but 2 words and ignore the majority of the points made with another cut and paste" game. 

I am not playing any game or scoring any points. I am not denying that there are anomalies.

I am merely pointing out the fact that there is independent taxation for married people.

https://www.tax.org.uk/media-centre/blog/media-and-politics/debate-taxing-families-30-years-after-introduction-independent

You may find the above of interest.

Which states: "Wrigley closed her speech by saying for the low income taxpayer, there is no such thing as independent taxation because for them taxation actually means benefit and tax credit claims."

So even your own link contracts your statement that "there is independent taxation for married people"

ratechaser

Get a room you two 

xylophone

So even your own link contracts your statement that "there is independent taxation for married people" 

No, the views of a contributor are cited in the article.

Read the article in full - it certainly goes through the anomalies.

The anomalies do not change the fact that we do have independent taxation.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg22100

Finance Act 1988 introduced radical changes to the taxation of husbands and wives including, in particular, the separate taxation of their income and chargeable gains. The new regime is known as Independent Taxation and applies for 1990-91 and subsequent years. More information is set out in the Independent Taxation Handbook (IN).

https://www.europeantax.blog/post/102fv8r/what-does-independent-taxation-mean

It seems amazing to remember that full independent taxation for married women was not introduced in the UK until 1990. 

The author of the above also comments on the anomalies .

..The marriage allowance is not the only aspect of the UK tax system that cuts across the principle of independent taxation.

but does not deny that independent taxation exists.....

xylophone

Get a room you two 

Or get a life.....

zagfles

xylophone said:

So even your own link contracts your statement that "there is independent taxation for married people" 

The anomalies do not change the fact that we do have independent taxation.

Ah yes, it's independant. Except where it's not independant. I'm glad that's cleared up.

This is where you snip all but the first sentence and pretend I've agreed you're right I think.

zagfles

xylophone said:

Get a room you two 

Or get a life.....

Or a dictionary Yes yes I know...