Marriage Tax Allowance

thrifty247

I have just found out about this and am a little confused, it states I could save £252 a year in tax.
Does the £1260 from my wife's personal allowance get added to my personal allowance? giving me a personal allowance of £13830, as in an extra £105 tax free per month or does HMRC calculation mean I just pay £252 less in tax and my allowance doesn't actually increase

Alice_Holt

One for the Tax Cutting forum, not the Benefits forum.

Perhaps a MSE forum champion / person could move it?

Dazed_and_C0nfused

thrifty247 said:

I have just found out about this and am a little confused, it states I could save £252 a year in tax.
Does the £1260 from my wife's personal allowance get added to my personal allowance? giving me a personal allowance of £13830, as in an extra £105 tax free per month or does HMRC calculation mean I just pay £252 less in tax and my allowance doesn't actually increase

No, you don't get an increased Personal Allowance.

You get a reduction of £252 off whatever your tax liability is.

If you are on PAYE though HMRC increase your tax code allowances so you see the benefit during the course of the year without having to wait for a refund.

badmemory

To cut a very long story short.  Only if your wife pays no tax & you only pay at 20%.  And SHE has to apply for it not you.  If you manage to up her tax bill get ready for an uncomfortable conversation.

sheramber

badmemory said:

To cut a very long story short.  Only if your wife pays no tax & you only pay at 20%.  And SHE has to apply for it not you.  If you manage to up her tax bill get ready for an uncomfortable conversation.

It can be advantage if the lower paid partner is only liable to a small tax charge.

When I transfered the allowance I bacame liable to pay £80 tax but my husband got the whole credit so , overll, we were better off.