Will You Benefit From The New Marriage Allowance?
It must be an election year.
The Government is to reward married couples with a tax-break.
Not all couples, however, and not with life-changing amounts, but it's better than nothing.
From April 2015, spouses and civil partners who earn less than £10,600 per year can transfer a portion of their tax-free allocation to their partner if their partner pays basic-rate tax.
Judy earns £25,000 per year.
Her partner, Jane, earns £5,500 per year.
Judy is a basic tax rate payer.
Jane does not pay tax and does not use £5,100 of her tax-free allocation.
Therefore, she can give some of the remaining £5,100 of her allocation over to Judy.
It could save couples up to £212 each year on their tax bill.
- Couples in a marriage or a civil partnership where both partners were born after 1948.
- Where one partner pays basic tax (earns between £10,600 and £31,785) whilst the other does not (earns below £10,600)
Prime Minister, David Cameron, has said:
I made a clear commitment to the British people that I would recognise marriage in the tax system - so I am delighted that we’re just a little over a month away from it coming into effect.
It's easy to be cynical.
Certainly, it doesn't offer the kind of tax relief that would make a real difference to most couples. Not to mention the fact that it ignores the millions of couples in the UK who don't choose to marry and, once again, it alienates those who are single. Equally, whilst the extra money will be welcomed by all who benefit from it, it doesn't address the deeper issues of why so many couples -- many with families -- are struggling for financial security.
But that's what happens when a general election is looming
What's key here, however, is that gay couples are included. Changes like this really do highlight how important the introduction of equal marriage and civil partnerships have been. Same-sex couples can now benefit from the same incentives and rewards as opposite gender couples. Like we said, it's not much but it's certainly better than nothing.
For more information and to register your interest click here