Marriage allowance

conFusedbrain

I am claiming marriage allowance tax for my wife who doesnt make enough state pension to pay tax and she has no other income, what happens next year when her pension rises above threshold. Will I no longer be able to claim this?

MACKEM99

You can keep it or revert it back to her.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82181355#Comment_82181355

…unless the Chancellor chooses to abolish Marriage Allowance in Wednesday's Budget…..

sheramber

You can keep it and she may have to pay some tax.

If her tax bill is less than your credit from the transfer allowances then, as a couple, you are still benefitting.

conFusedbrain

Even though she will be above £12570 threshold?

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82181372#Comment_82181372

In this case, as she has no other income, she may receive a simple assessment tax bill for the whole annual amount at the end of the 2027 financial year.

eskbanker

https://forums.moneysavingexpert.com/discussion/6688134/marriage-allowance

https://forums.moneysavingexpert.com/discussion/comment/82181376#Comment_82181376

Not sure I'm following what's happening here - if you're claiming the allowance from your wife, that reduces her personal allowance from £12,570 to £11,310, which is presumably already below her current pension level if she's going to exceed £12,570 next year, so she should currently be paying tax on the excess? Or has she perhaps only started receiving state pension during the current tax year?

Welshlady78

As said above, you can keep it or cancel it so your wife will regain her full personal allowance, please bear in mind if you decide to cancel you must do this before the new tax year starts, so no later than 05/04/2027.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82181372#Comment_82181372

https://forums.moneysavingexpert.com/discussion/comment/82181376#Comment_82181376

Yes. There's a clear (but probably more detailed than you're hoping for!) explanation here which might help you: https://www.litrg.org.uk/tax-nic/income-tax/tax-allowances/marriage-allowance

in particular this section:

35har1old

https://forums.moneysavingexpert.com/discussion/comment/82181477#Comment_82181477

The person who made the claim has to be the one to cancel unless a divorce has occured