From April 2015, married couples and civil partners will be eligible for a new transferable tax allowance. The Transferable Tax Allowance for married couples will enable spouses and civil partners to transfer a fixed amount of their personal allowance to their spouse.
In order to benefit, both of you must be Basic Rate taxpayers and one of you must have taxable income below the Personal Allowance (£10,600 2015/16).
You will be able to claim the allowance if all of the following apply:
- you’re married or in a civil partnership
- you have an annual income of less than £10,600 – including pensions, savings and investments
- your spouse or civil partner has an annual income of between £10,601 and £42,385
- you were both born on or after 6 April 1935
One individual will be able to transfer £1,060 of their personal allowance to their spouse or civil partner. It will mean that the higher earner will be able to earn £1,060 more before they start paying income tax, saving up to £212 per annum.
The claim will be made online and entitlement will be from the 2015/16 tax year. You can register your interest here: https://www.gov.uk/marriage-allowance, after which you will receive an email telling you when you can apply.