Marriage Allowance from spouse

dapache

I receive £1260 Marriage Allowance from my wife who used to pay no tax on her Superannuation.  However in April 2021 she started paying tax which has increased each year since and I still receive the £1260. Should I stop claiming this or does it make no difference?

molerat

How much does she receive per year ?  If she is receiving less than £12570 then there is still some benefit as a couple in keeping the transfer as she may not be paying as much as the £252 tax you are saving.

35har1old

dapache said:

I receive £1260 Marriage Allowance from my wife who used to pay no tax on her Superannuation.  However in April 2021 she started paying tax which has increased each year since and I still receive the £1260. Should I stop claiming this or does it make no difference?

If you do your wife has to do the cancellation 

LITRG

Hi, our info on the marriage allowance may help you both work out if it is still beneficial to claim: https://www.litrg.org.uk/news/marriage-allowance-and-importance-timing

dapache

molerat said:

How much does she receive per year ?  If she is receiving less than £12570 then there is still some benefit as a couple in keeping the transfer as she may not be paying as much as the £252 tax you are saving.

Thanks for your reply. My wife continues to receive the £12570 personal allowance so I'm confused as to whether there is is any benefit in this any more.

Dazed_and_C0nfused

dapache said:

molerat said:

How much does she receive per year ?  If she is receiving less than £12570 then there is still some benefit as a couple in keeping the transfer as she may not be paying as much as the £252 tax you are saving.

Thanks for your reply. My wife continues to receive the £12570 personal allowance so I'm confused as to whether there is is any benefit in this any more.

If she is getting a Personal Allowance of £12,570 then Marriage Allowance is no longer in place.

One slight complication with that is I think HMRC show the full Personal Allowance in a tax code then there is a deduction of £1,260 so her tax code allowances (as far as Personal Allowance is concerned) is just £11,310.