Arrived couples allowance

Roman2020

My son earns around £14000 per annum  his wife has no income but she does have savings . 

Roman2020

My son  earns around £14000 per annum his wife has no income though she does have savings which generate some interest  . Would 
they be entitled to claim the married  couples tax allowance ?

MovingForwards

Does her savings generate £1k + interest each year? 

Married couples allowance moves a bit of tax allowance from one person to their spouse, it's not an additional tax allowance between them.

Alice_Holt

Roman2020 said:

My son  earns around £14000 per annum his wife has no income though she does have savings which generate some interest  . Would 
they be entitled to claim the married  couples tax allowance ?

        You may wish to post this Q on the Cutting Tax board, rather than the Benefits board. 

    But here are some examples:
        https://www.gov.uk/marriage-allowance
"Marriage Allowance lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner.

This reduces their tax by up to £250 in the tax year (6 April to 5 April the next year)."

It certainly looks a possibility, is the £14k gross or net?    What tax does he pay? 

    

Dazed_and_C0nfused

Roman2020 said:

My son  earns around £14000 per annum his wife has no income though she does have savings which generate some interest  . Would 
they be entitled to claim the married  couples tax allowance ?

Unless one of them is over 85 then no.

But the wife should be able to apply for Marriage Allowance, which is a different thing to Married Couples Allowance.

This will save your son a maximum of £250 (current tax year).

Your daughter in law will get a reduced Personal Allowance of £11,250.

Note unless she had interest in excess of £16,250 then the £1,000 savings nil rate of tax (aka Personal Savings Allowance) is of no relevance to her.  She cannot benefit from this as you must have income of at least £16,250 before it is available to be used. 

Assuming her interest is less than £16,250 then she will pay no tax on it as she has her (reduced) Personal Allowance and savings starter rate of tax (upto £5,000 interest taxed at 0%) to use.

Depending on when they got married and her income in previous tax years it may be possible for her to apply for the 4 years back to 2016:17.  Although the deadline to apply for 2016:17 is 5 April 2021.