Marriage Allowance 2016-2017
Announced in 2013, Marriage Allowance offers couples who are married or in a civil partnership the option to reduce their tax payments by up to £212 in their 2016-2017 financial year.
The Marriage Allowance 2016/17 is available to couples that meet the following criteria:
- You are married or in a civil partnership;
- Your annual income is the maximum of £10,600 or less (the personal allowance for 2016-2017), as well as up to £5000 of tax-free savings interest;
- Your partner’s annual income is between £10,601 and £43,000 (the current earning thresholds for the basic rate tax payer);
- You were born on or after 6th April 1935.
The Marriage Allowance 2016/17 allows you (the partner earning below the current personal allowance) to transfer up to £1080 of your unused personal allowance, increasing your partner’s personal allowance, potentially allowing for a reduction in tax paid of £212.
Although the marriage allowance claim applications are already being processed, there is still time to apply for 2016-2017, and it is important to do so as soon as possible. Your claim can now also be backdated to 2015/16 – allowing you to increase the tax savings you may be entitled to.
If you do not meet the criteria set out because you or your partner were born before 6th April 1935, you may be eligible for Married Couple’s Allowance which offers potential tax savings of up to £835.50 a year. If this is you, why not take a look at a Married Couples Allowance Calculator to see how much you can potentially reduce your tax bill by.
You can now apply for your Marriage Allowance online or on the phone – 0300 200 3300, or our team can assist you if you wish.
If you would like to find out more about the Marriage Allowance 2016/17 and how you can apply, contact our Personal Tax Expert expert Amy Telford, at Harvey Telford and Bates Chartered Accountants on 01743 462604 or email [email protected] to see how we can help you.
