Bespoke Tax Accountants

Specialist tax advice, accountancy and tax returns

01242 505970
info@bespoketax.com

  • Home
  • About Us
    • Meet The Team
    • Careers
    • Statutory Information
    • Privacy Policy
  • Who We Help
    • Personal and Family
    • Business
    • Our Clients
  • News
    • Making Tax Digital
  • Giving Back
  • Contact
  • Cloud Accounting
    • Xero

Could you claim a £662 tax refund?

25th October 2017 By bespoketax

Could you claim a £662 tax refund?

The marriage allowance (MA) allows couples, where one partner does not fully utilise their personal tax allowance, to share a limited amount of the unutilised portion with their spouse. The MA is only available to married couples and those in a civil partnership.

The MA allows the lower earning partner to transfer up to £1,150 (2016-17: £1,100) of their unutilised personal tax-free allowance to a spouse or civil partner. The MA can only be used when the recipient of the transfer doesn’t pay more than the basic 20% rate of income tax. This transfer reduces the receiving spouse’s tax by up to £230 in the current tax year, 2017-18 i.e. (£1,150 x 20%).

Couples that have not yet claimed the MA can backdate their claim to 6 April 2015 if they meet the eligibility requirements. This could result in a combined saving of up to £662 (for 2015-16, 2016-17 and 2017-18). Couples have up to four years to claim backdated MA.

Planning note

The application must be made by the non-taxpayer who is transferring their allowance. To benefit as a couple, the non-taxpayer needs to earn less than their partner and have an income of £11,500 or less during 2017-18. The receiving partner’s income for the same year must be between £11,501 and £45,000 (or £43,000 if you’re in Scotland).

An application for the marriage allowance can be made online or by telephone. There is an online application process you can use athttps://www.gov.uk/apply-marriage-allowance.

Filed Under: Income Tax

Recent News

  • Termination payments
  • Bona Vacantia – dissolved companies
  • Reminder of compensation limits for bank deposits
  • Reminder that the plug-in grant has ended

News Categories

  • Budget Summary
  • Business
  • Business Support
  • Capital allowances
  • Capital Gains Tax
  • Company Secretarial
  • Construction Industry Scheme
  • Corporate Governance & Regulation
  • Corporation Tax
  • Customs Duties
  • Duties
  • Employee Benefits
  • Employment & Payroll
  • Employment Law
  • European Union
  • Family Tax Credits
  • General
  • HMRC notices
  • Income Tax
  • Inheritance Tax
  • National Insurance
  • NIC & Pensions
  • Other duties
  • Overseas personal tax issues
  • Overseas tax issues
  • Payroll
  • Pension
  • Personal
  • Practice News
  • Stamp duty
  • Stamp Duty Land Tax
  • Tax credits
  • Tax Diary
  • Value Added Tax
  • VAT & Duties

About Us

Bespoke has a reputation for helping our clients make the most of their financial situations and in turn we have become a trusted extension of their business or family.

Bespoke assist with compliance requirements, providing specialist tax advice, and planning for now and the future.

Keep informed.
Sign up for our Topical Newsletter

Our FREE monthly newsletter will keep you up to date with the latest news related to the world of accountancy.

Register Here

Contact

Delta Place,
27 Bath Road, Cheltenham,
Gloucestershire, GL53 7TH
01242 505970
info@bespoketax.com

ICAEW Chartered AccountantsXERO Gold PartnerChartered Institute of TaxationMember of EISA

Copyright © 2022 · Bespoke Tax Accountants · Website by Culpepper & Co

.