Marriage Allowance

Monobloc

I currently receive £1260 from my wife’s Personal Allowance.Due to increases in the State Pension over the years,and a static PA,my wife is now paying increasing amounts of tax.We are thinking of transferring back so that my wife receives her full PA,ie £12570.
Does this affect the tax rebate I received at the time of the origonal transfer.Does it have to be paid back?.TIA.

Dazed_and_C0nfused

Monobloc said:

I currently receive £1260 from my wife’s Personal Allowance.Due to increases in the State Pension over the years,and a static PA,my wife is now paying increasing amounts of tax.We are thinking of transferring back so that my wife receives her full PA,ie £12570.
Does this affect the tax rebate I received at the time of the origonal transfer.Does it have to be paid back?.TIA.

No reason it should.

If you (or your wife, whoever needs to do it) cancel the application for Marriage Allowance now then it will remain in place until the end of this tax year (2024-25).

She will get the full Personal Allowance again from 6 April 2025 onwards.

If you (or your wife) do nothing until after 5 April 2025 then she will have the reduced Personal Allowance for another year (2025-26).

I presume you realise this but you don't get any extra allowance, Marriage Allowance is a tax reducer, worth a £252 deduction from your tax liability.

sammyjammy

My parents are in the same situation but decided just to leave it in place because it makes no difference to the household income and one day before they pop their clogs allowances may rise!