[Avatar]

Marriage allowance

05/02/2019 07:29:01
Hi, sorry to ask this question, for example if i had after tax profits of £9,000, does this qualify for the remaining £2,500 as transferable allowance to my wife, or is it based upon pre tax earnings.
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1567
  • Offline
  • View profile
  • Send message

Re:Marriage allowance

05/02/2019 14:57:16
Hi,

Thanks for your question.

Marriage Allowance is a flat transfer of 10% of the tax-free Personal Allowance for a tax year. For example, in the previous tax year - 2017/2018 - as the Personal Allowance was £11500, then a Marriage Allowance transfer would transfer £1150 to the tax-paying partner. This would also mean that the person making the transfer would then pay tax on any income over £10350.

I hope this helps.
[Avatar]

Marriage allowance

06/02/2019 07:48:59
Hi, just one more question, is the Income based upon before tax & allowances.
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1567
  • Offline
  • View profile
  • Send message

Re:Marriage allowance

07/02/2019 16:28:48
Hi,

Thanks for your further question.

Yes - it is based on your gross income.

I hope this helps.
[Avatar]

Re:Marriage allowance

11/03/2019 07:36:36
Hello we rent out a single property. profit is approximately £7500 P/A
The property is owned jointly between me and my wife who is a non tax payer she has her state pension and a very very small private pension.

She has transferred her marriage allowance £1150 over to me

Say we split the profit 50/50 i will pay tax on £3750

Would she have to pay any tax on £3750 taking into account her state and private pension as the combined monies are below her £11,500 personal allowance

One other question would she have to register for self assessment
[Avatar]

Re:Marriage allowance

11/03/2019 12:36:01
Hi,

Thank you for your question.

Due to the figures that you have used in your question I have assumed that you are referring to the 2017-18 income tax year.

I would advise you that you must report any profits relating to Income from Property on a Self Assessment tax return if the income is either £2,500 to £9,999 after allowable expenses or £10,000 or more before allowable expenses.

If your wife’s share of the profit was £3750 then you are correct in stating that she will need to register for Self Assessment and complete a 2017-18 Tax Return.

Please also refer to the guidance in respect of the £1000 Property Allowance that was introduced on 6 April 2017:

Tax-free allowances on property and trading income

Your wife will receive her Personal Allowance for 2017-18 on completion of the 2017-18 tax return which will reduce the amount of tax due in respect of the Income from Property.

The actual amount of tax due on this income will depend on her total income from all sources for 2017-18, so she may be covered by her Personal Allowances in which case no tax would be due.
[Avatar]

Marriage allowance

05/04/2019 16:23:37
If I apply for Marriage Tax allowance & requested it to be back dated & its then found that for some years we were ineligible what happens,also will it be acceptable as an application for the new Tax year 19/20, many tahnks
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1567
  • Offline
  • View profile
  • Send message

Re:Marriage allowance

11/04/2019 12:58:31
Hi,

Thanks for your question.

If you are ineligible for marriage allowance we would not process the claim for that year.

If the partner receiving marriage allowance is a high rate tax payer you would not be able to claim marriage allowance. You can choose which years you require the transfer for.

You can apply for marriage allowance online at: Marriage Allowance , by using your personal tax account at: Personal tax account: sign in or set up, by calling the taxes helpline on 0300 200 3300 or by writing to us at HMRC; PAYE; BX9 1AS.

I hope this helps.

Would you be interested in helping us improve the Forum?

We are looking for volunteers to spend some time speaking with our research team.

If you think you could help us, please click the link below for more information and to register your interest:

https://docs.google.com/forms/d/e/1FAIpQLSc0At8nLGwwiW-uE98PBLi9rvu3BtsAzE80hv2Q49iuFM1y-A/viewform?usp=sf_link.

We look forward to hearing from you.

[Avatar]

Marriage allowance

25/04/2019 16:30:26
Hello! Recently I applied for marriage allowance. I received a letter, stated..."If your partner completes a Self Assessment tax return, their tax bill will be adjusted to include Marriage Allowance when they file their return". My husband tries to fill his tax return, but marriage allowance doesn't show in his calculation. I remembered that I did the same last year and I transferred marriage allowance to him and the sum showed in his self assessment just before sum before taxes. Is there something new from this financial year? Thanks a lot!
[Avatar]

Re:Marriage allowance

29/04/2019 08:11:30
Hi Florance,

When we capture your husband's tax return, his SA302 tax calculation will show marriage allowance as a deduction of tax.

When he submits his tax return online it takes around 72 hours for us to process and capture the return.

Your husband should check his calculation and if the transfer is not shown please have him call the self assessment helpline on 0300 200 3310. The helpline is open Monday to Friday 8am to 8pm, Saturday 8am to 4pm and Sunday 9am to 5pm.

Thanks for your question.

Would you be interested in helping us improve the Forum? We are looking for volunteers to spend some time speaking with our research team. If you think you could help us, please click the link below for more information and to register your interest:

https://docs.google.com/forms/d/e/1FAIpQLSc0At8nLGwwiW-uE98PBLi9rvu3BtsAzE80hv2Q49iuFM1y-A/viewform?usp=sf_link.

We look forward to hearing from you.


Reply