As featured in the
Autumn Statement, a new option will be available to married couples and civil
partnerships from the 2015/16 tax year onwards.
The new feature will
enable an individual to transfer up to £1000 of his/her personal allowance to
his/her spouse or civil partner. Couples that only live together and are not married/in a civil partnership will not be
eligible. In the following years from 2015/16, the transferable amount will be
increased in proportion with Personal Allowance levels.
This transfer will
only be allowed if both members of the marriage/civil partnership are
not higher rate of additional rate taxpayers (earning below £41,685 at current
levels).
As a result, it only
seems to benefit partners which have one member not earning as much as the
personal allowance figure. This transfer will enable the other partner to
reduce his/her tax bill by taking on the additional personal allowance.
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