marriage allowance tax year 25/26

whiterrosie

I have just cancelled my tax year 25/26 marriage allowance income tax transfer to my husband as my state pension increase will take me over my personal tax threshold, but I'm wondering now if I did the right thing. I realise that even though my state pension would be subject to tax, would we still be better off as a couple with the marriage allowance transfer to my husband.  He works part-time earning around £14k, collects full state pension and has a couple of small personal pensions, bringing his gross income to around £40k per annum

Dazed_and_C0nfused

How much will your State Pension be for 2025-26?

Do you have any other taxable income?

Do you mean you will go over your current Personal Allowance (£11,310) or the full £12,570?

whiterrosie

My State pension will be £11973 for 2025/26
I have no other taxable income.
As I have cancelled my marriage allowance, I will have the full £12570 for the up coming tax year.
 

Dazed_and_C0nfused

whiterrosie said:

My State pension will be £11973 for 2025/26
I have no other taxable income.
As I have cancelled my marriage allowance, I will have the full £12570 for the up coming tax year.
 

Assuming you are happily married I'm not sure you have thought that through.

If you have Marriage Allowance in place then you would pay £132.60 in tax.  And your husband would save £252.

You will now avoid paying any tax.  But your husband will pay £252 more.

So as a couple you will be £119.40 worse off.