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Marriage allowance on tax
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jgh1
Posts: 1 Newbie
Hello, I have been looking into the marriage allowance and completely understand how it works. But the thing I can not find is that if the partner that is earning less than the pre tax allowance also earns dividends does this affect the benefit for the other basic rate partner? Any advice would be appreciated
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It doesn't affect the other partner: I claim it because DH earns very little, so my tax allowance is bigger than his.
However, if all his odds and ends of taxable income reach his (lower) tax allowance, he'll have to pay tax. So he will start paying tax sooner than he would have done I didn't have some of his personal allowance.
If the dividends are taxable, and you add all their taxable income together, do you get to over the normal personal allowance? If you do, then probably not worth the effort.
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