Latest figures from HMRC show that millions of married couples are yet to claim the Government’s transferable tax allowance; the marriage allowance.
The marriage allowance was introduced from April 2015, allowing eligible married couples and civil partners to transfer 10% of their personal allowance (£1,100 for the 2016/17 tax year) to their spouse or civil partner.
Of the 4.2 million eligible couples, just 1 million have actually claimed. This means that for those couples where neither are higher or additional rate taxpayers, and one person does not use all of their personal allowance, the potential benefit (up to £220 for 2016/17) will be lost. Further, an opportunity to backdate a claim for the previous tax year where the potential benefit (up to £212 for 2015/16) has not been claimed may also be lost.
If you would like to discuss this further, or require assistance please speak to David Nash, Partner on 01788 539000.