20th February 2015
Married couples can register for a new tax break from today, that is expected to make over four million couples better off.
Couples who are married or in a civil partnership can register for the £1,060 transferable allowance from today and is expected to benefit traditional couples, where one parent stays at home to look after children, the most.
The allowance means a spouse or civil partner who doesn’t pay tax, or doesn’t pay tax above the 20% basic rate of income tax, can transfer up to £1,060 of their personal tax-free allowance – the amount of income that can be earned before income tax is paid – to a spouse, as long as they do not pay more than the basic rate of income tax. This could save a couple up to £212 a year.
Couples can register their interest in transferring their allowance a www.gov.uk/marriageallowance
The change, which comes into effect from 6 April will benefit four million married couples and 15,000 civil partnerships.
Prime minister David Cameron 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.
‘We can afford to do it because of the growing strength of the British economy. And as a result, it means families up and down the country can get a little bit of extra support and more financial security.’
He said the tax break was more than about money.
‘Families are the bedrock of our society. It is families who raise our children, look after our old and keep our country going. And this tax change is about saying as a society, we recognise that,’ he said.
From April, HMRC will contact those who have registers for the allowance to apply. People can register at any point in the tax year and still receive the full benefit of the allowance.