Are you a nil rate tax payer and your partner is a basic rate tax payer?

The Marriage Allowance applies to individuals who are nil rate tax payers and allows them to transfer £1,060 of their Personal Allowance to their husband, wife or civil partner so long as they are basic rate tax payers.

Therefore if you earned £8,000 and your partner earned £15,000, you could transfer £1,060 of your £10,600 Personal Allowance thereby reducing your own Personal Allowance to £9,540 but increasing your spouse's personal allowance to £11,660. This would result in a £212 tax saving for your partner.

For more information and to apply for the Marriage Allowance, please visit the link below:

https://www.gov.uk/marriage-al...

Please note that information provided above is based on the 2015/16 tax allowances.

Harding Financial does not provide tax advice. If you require any further information please contact a tax professional.