Experts at Whitley Stimpson are urging couples to act now to see if they could get a £900 tax rebate before it’s too late.
The Marriage Allowance lets a person transfer £1,250 of their Personal Allowance to their husband, wife, or civil partner – if they are a higher earner. In order to benefit as a couple, the lower earner must normally have an income below their Personal Allowance – which is usually £12,500.
It is possible to backdate the claim to include any tax year since 5th April 2015 that the couple was eligible for Marriage Allowance, but the deadline to do so is now looming large.
Jennifer Ricketts-Gregory, manager at Whitley Stimpson explains: “The Marriage Allowance entitles non-taxpayers to transfer up to 10 percent of their £12,500 personal allowance to a basic rate taxpaying spouse or civil partner. Transferring £1,250 of your tax-free allowance to your taxpaying partner this year could reduce their Income Tax bill by £250.”
However, eligible couples may need to act sooner rather than later if they want to backdate their claim for the past four years. In the upcoming tax year there will no longer be the option to reclaim the allowance from 2015/16.
Jennifer Ricketts-Gregory continues: “Couples who haven’t claimed Marriage Allowance for the past four years can get the rebate backdated and receive a cheque from the taxman for up to £900, making the total gift worth up to £1,150. This is the last time people will be able to reclaim the allowance from 2015/16, because come next April it will be lost.”
If you’re unsure about how to manage your tax affairs, Whitley Stimpson has a team of experienced and highly qualified specialists, with offices in Banbury, Bicester, High Wycombe and Witney, who can advise on the marriage allowance and personal tax matters.
For further information contact Jennifer Ricketts-Gregory, on 01295 270200 or JenniferR@whitleystimpson.co.uk