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.
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
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:
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
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!
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.
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