kopernikus
Inactive User
Just a note to remind DW members about a measure announced in this years (2014) budget about a transferable personal allowance. You need to apply to HMRC in the next couple of months to get your allowance in place by the start of the 2015/16 tax year. A brief extract of the HMRC leaflet is detailed below and the full document in pdf format is attached to this post. It will only save £200 for those paying income tax at the standard rate but it's got to be worth applying for.
Transferable tax allowances for married couples and civil partners.
Who is likely to be affected?
Income tax payers, employers and pension providers.
General description of the measure.
This measure will allow a spouse or civil partner who is not liable to income tax above the basic rate to transfer up to £1,050 of their personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate.
Policy objective.
This measure recognises marriage and civil partnerships in the income tax system. Taking the tax liabilities of a couple together, it can provide a financial benefit where one spouse or civil partner has an income less than their personal allowance.
Background to the measure.
This measure was confirmed on 5 December 2013.
This Tax Information and Impact Note (TIIN) updates and replaces the TIIN published on 10 December 2013.
Detailed proposal.
Operative date:- This measure will have effect from the 2015-16 tax year.
HM Revenue & Customs (HMRC) is developing the process by which the married couple or civil partners will transfer their personal allowance. HMRC will ensure that the process is as straightforward as possible for customers. The lead option is that one party will apply on-line to transfer the allowance to their spouse or civil partner and HMRC will notify the recipient about the subsequent change to their tax code. HMRC recognises that some customers may need additional support to apply to transfer the allowance.
** These allowances cannot be transferred to another individual
Transferable tax allowances for married couples and civil partners.
Who is likely to be affected?
Income tax payers, employers and pension providers.
General description of the measure.
This measure will allow a spouse or civil partner who is not liable to income tax above the basic rate to transfer up to £1,050 of their personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate.
Policy objective.
This measure recognises marriage and civil partnerships in the income tax system. Taking the tax liabilities of a couple together, it can provide a financial benefit where one spouse or civil partner has an income less than their personal allowance.
Background to the measure.
This measure was confirmed on 5 December 2013.
This Tax Information and Impact Note (TIIN) updates and replaces the TIIN published on 10 December 2013.
Detailed proposal.
Operative date:- This measure will have effect from the 2015-16 tax year.
HM Revenue & Customs (HMRC) is developing the process by which the married couple or civil partners will transfer their personal allowance. HMRC will ensure that the process is as straightforward as possible for customers. The lead option is that one party will apply on-line to transfer the allowance to their spouse or civil partner and HMRC will notify the recipient about the subsequent change to their tax code. HMRC recognises that some customers may need additional support to apply to transfer the allowance.
** These allowances cannot be transferred to another individual