Have I misunderstood the 'marriage tax allowance'?

UnsureAboutthis

As above

When I was completing our online tax returns last night, I looked into the above.

My question. In England, for most people the annual personal tax allowance
atm is 12570. Therefore I assumed, when married, both people would get 12570 x 2 =
25140.

If the above scdnario was applied and one of the couple gave 10% of their allowance to their
other half, would this mean the person with the married allowance would have a tax-free
allwance of 13570 and the other 11570 - or as I
am reading it - one will have 12570 and the other 11570 - therefore = 25140?


I can see the benefits for married people/couple where one earing less than the allwance tranfers to the other but calling it the "married mans allowance" as it was known when we got married, is not really an additional amount but a way to slightly reduce tax -  am I correct?

Therefore, the benefit of marriage is - saving about 200 in tax a year

Mark_d

https://www.gov.uk/marriage-allowance

eskbanker

UnsureAboutthis said:

My question. In England, for most people the annual personal tax allowance
atm is 12570. Therefore I assumed, when married, both people would get 12570 x 2 =
25140.

If the above scdnario was applied and one of the couple gave 10% of their allowance to their
other half, would this mean the person with the married allowance would have a tax-free
allwance of 13570 and the other 11570 - or as I
am reading it - one will have 12570 and the other 11570 - therefore = 25140?


I can see the benefits for married people/couple where one earing less than the allwance tranfers to the other but calling it the "married mans allowance" as it was known when we got married, is not really an additional amount but a way to slightly reduce tax -  am I correct?

Therefore, the benefit of marriage is - saving about 200 in tax a year

The donor has their personal allowance reduced to £11,310, and the £1,260 is transferred as a credit against the tax liability of the recipient, thereby saving £252 per year in total if the donor earns less than £11,310 and the recipient earns more than £13,830 of taxable income.

Dazed_and_C0nfused

UnsureAboutthis said:

As above

When I was completing our online tax returns last night, I looked into the above.

My question. In England, for most people the annual personal tax allowance
atm is 12570. Therefore I assumed, when married, both people would get 12570 x 2 =
25140.

If the above scdnario was applied and one of the couple gave 10% of their allowance to their
other half, would this mean the person with the married allowance would have a tax-free
allwance of 13570 and the other 11570 - or as I
am reading it - one will have 12570 and the other 11570 - therefore = 25140?


I can see the benefits for married people/couple where one earing less than the allwance tranfers to the other but calling it the "married mans allowance" as it was known when we got married, is not really an additional amount but a way to slightly reduce tax -  am I correct?

Therefore, the benefit of marriage is - saving about 200 in tax a year

Marriage Allowance means the applicant has a reduced Personal Allowance (£11,310).

And the recipient has the same Personal Allowance (£12,570) but gets a tax reduction worth up to £252.

LITRG has a good explanation here, looks for mechanics.

https://www.litrg.org.uk/tax-nic/income-tax/tax-allowances/marriage-allowance-transferable-tax-allowance

sheramber

Married couples alliowance is a different allowance which is available to  couples where one spouse was born. For 6 April 1935.

UnsureAboutthis

OK, thanks to all. I found the link posted by Dazed easy to understand. Now, I'm not confused.