Marriage allowance

Wellpell

after the new pension rise in April, I will be eligible for tax myself. Will this mean I can no longer give my wife my £1200 allowance or do I take it back which would mean I no longer have to pay tax or should I leave it with my wife or am I not allowed either way?

Robbie64

Wellpell said:

after the new pension rise in April, I will be eligible for tax myself. Will this mean I can no longer give my wife my £1200 allowance or do I take it back which would mean I no longer have to pay tax or should I leave it with my wife or am I not allowed either way?

Doesn't it only work if you have some unused personal allowance? If your income is above the personal allowance threshold then you won't have anything to transfer. Or at least that's my understanding.

Edit to add: I've checked up and it appears that you have to cancel the Marriage Allowance when your income changes and makes you no are longer eligible https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Dazed_and_C0nfused

Wellpell said:

after the new pension rise in April, I will be eligible for tax myself. Will this mean I can no longer give my wife my £1200 allowance or do I take it back which would mean I no longer have to pay tax or should I leave it with my wife or am I not allowed either way?

You remain eligible unless you are a higher rate payer.

Sometimes it can be better for you (as a couple) to. Pay some tax if it means your wife saves more.

For example if you will now pay say £100, with Marriage Allowance in place, but your wife saves £252 then you will be £152 better off as a couple.

sheramber

Do you mean that will be liable to pay tax due to your lower personal allowance but if you had your full allowance you would not be liable to pay tax?

In that case , you are still better off as a couple as you pay a  small amount of tax which is less than the  credit that your wife gets. 

This is perfectly okay.