Cancelling marriage tax allowance

NedS

Hi,

My spouse has transferred 10% of their tax free allowance to me under the Marriage Tax Allowance scheme.

If we were to cancel as we no longer wish to claim, when does the claim end - when will our tax codes revert to normal (£12570 each). Immediately (current tax year), or the next tax year (6th April 2022)?

The GOV.UK page is not definitive for this situation, only for if the claim is stopped due to the marriage ending or a change in income:

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Thanks

Dazed_and_C0nfused

I think it depends who cancels it, when do you want it to end?

NedS

I would like it to end immediately.

I think only the person who is donating 10% of their allowance can cancel, unless the cancellation is due to the marriage ending, at which point either person can cancel.My spouse can request the cancellation, so not an issue for us either way.

Jeremy535897

The answer is in the link you referenced:

"After you cancel

If you cancel because of a change of income, the allowance will run until the end of the tax year (5 April).

If your relationship has ended, the change may be backdated to the start of the tax year (6 April).

This might mean you or your partner underpays tax for the year."

There would be no reason to cancel unless there was a change in income, but if you cancel for any reason other than the end of a relationship, the change takes effect from the following tax year. The legislation is in section 55D ITA 2007:

"(6)The withdrawal of an election under subsection (4) does not, except in the cases dealt with by subsection (7), have effect until the tax year after the one in which the notice is given.

(7)The withdrawal of an election under subsection (4) has effect for the tax year in which the notice is given if—

(a)in a case where the individual concerned met the condition in section 55C(1)(a) by reason of being married, the marriage has come to an end in that tax year, or

(b)in a case where the individual concerned met the condition in section 55C(1)(a) by reason of being in a civil partnership, the civil partnership has come to an end in that tax year."

sheramber

explained here   https://www.gov.uk/marriage-allowance

Either of you can cancel if your relationship has ended.

If you’re cancelling for another reason, the person who made the claim must cancel.

The allowance is for a year so it cannot be cancelled immediately.

After you cancel

If you cancel because of a change of income, the allowance will run until the end of the tax year (5 April).

Your husband cancels it now and it will stop after 5 April 2022.

 

NedS

Thank you both

Shell5

I would recommend calling them to cancel and confirm when it will stop and that it will only be going forward.   I did so online in Jan 20, to stop wef 6th April 20 and the system wiped out all the Marriage Allowance and my husband now has tax demands back to 17/18 tax year.   All sorted now, but it was a nightmare.