Ending Married Couples Allowance Transfer

michaels

https://forums.moneysavingexpert.com/discussion/comment/81967491#Comment_81967491

yeah, as I thought, some of the allowance would have been wasted, hence thinking I would just stop the transfer. Perhaps I should tell HMRC we separated a year ago….

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81967600#Comment_81967600

If your spouse had made a continuous application, which still doesn't seem clear, understanding what she has done would really have been sensible.

You may want to read this from LITRG though as it explains the process when someone only applies via a Self Assessment return, which could possibly have been an option she could have availed herself of.

https://www.litrg.org.uk/news/marriage-allowance-and-importance-timing?hl=en-GB#:~:text=If%20you%20are%20within%20self,return%20relates%20using%20this%20method.

michaels

Well obviously we did not understand that ending the arrangement was not instantaneous or back date table in the same way as signing up for it, this mostly resulted from the existence of a transfer question on the tax return form which we had incorrectly read as allowing us to opt in or out for every return year.

it seems odd to me that opting in is effectively back datable for multiple years (allowing previous allowance to be used if found to be beneficial long after the event) but opting out needs to be done before the actual circumstances are known.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81967987#Comment_81967987

That is basically how it works though, just without any opt out option as there is nothing to opt out of when an application is made solely on a tax return. It is done one tax year at a time.

the existence of a transfer question on the tax return form which we had incorrectly read as allowing us to opt in or out for every return year.