Marriage Allowance in Scotland

BrianCuthbert57

I recently applied for marriage allowance to transfer some of my wife's allowance to me, as my wife has no income, and having retired I am no longer a higher rate tax payer.  I received only £1,200 of my wife's tax free allowance in my tax code rather than the full £1,260.  On querying this with HMRC they say it is because I am in Scotland but I can find nothing on their website about this.  Anyone else facing this or able to explain?

Dazed_and_C0nfused

Firstly you cannot apply forvand receive Marriage Allowance.  I presume you mean you pretended to be your wife when applying?

Marriage Allowance doesn't entitle you to an increased Personal Allowance, it gives you a fixed deduction off your tax liability.

In 2021:22 it is £252 (£1,260 x 20%)

Scotland has a more complicated set of income tax rates so £1,200 x 21% = £252 i.e. you are paying 21% tax not 20% so the extra tax code allowance of £1,200 will save you £252.

There is an old example here,

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye13112

molerat

And £1326 adjustment for a 19% tax payer.  Something that is very difficult (impossible ?) to find explained anywhere

[Deleted User]

Hi,

sounds complicated, how much do you think you will save or gain?

Dazed_and_C0nfused

In the current tax year the maximum saving is £252.  Marriage Allowance is a tax deduction, not an an actual allowance which can impact things differently.