Wife allowance transfer

Sterlingtimes

I may have made a planning error.

I imagined that my allowance would be £12,570 plus £1,257 would be applied prior to my income calculation.

But it appears that without the £1,257 I would be about £1,200 into 40% tax. 

Does the 40% tax preclude the wife transfer? A matter of the order of things. 

Marcon

Sterlingtimes said:

I may have made a planning error.

I imagined that my allowance would be £12,570 plus £1,257 would be applied prior to my income calculation.

But it appears that without the £1,257 I would be about £1,200 into 40% tax. 

Does the 40% tax preclude the wife transfer? A matter of the order of things. 

The third bullet answers your question:

You can benefit from Marriage Allowance if all the following apply:

• you’re married or in a civil partnership
• you do not pay Income Tax or your income is below your Personal Allowance (usually £12,570)
• your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance

Source: https://www.gov.uk/marriage-allowance

Sterlingtimes

Marcon said:

• your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance

Source: https://www.gov.uk/marriage-allowance

Thank you, Marcon. That's a perfect answer. Had I known that, I would have saved £500 in tax,

Dazed_and_C0nfused

Sterlingtimes said:

Marcon said:

• your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance

Source: https://www.gov.uk/marriage-allowance

Thank you, Marcon. That's a perfect answer. Had I known that, I would have saved £500 in tax,

Your income isn't the key element.

It is what tax rate you were liable at.

So someone with taxable pay of £55,000 (and no other taxable income) who pays say £5,000 (gross) in RAS pension contributions is actually a basic rate payer and is eligible to either apply for or receive Marriage Allowance