The government has announced that for the first time in several years there will be a new Transferable Tax Allowance. This will enable spouses and civil partners to transfer a fixed amount of their personal allowance to their partner, but with conditions.
Firstly, don’t hold your breath because it will not be available until April 2015!
Secondly, there are income limits attached. The option will only be available where one partner pays tax at the basic rate and the other partner has unused personal allowances for the year.
Under these circumstances the partner with unused allowances will be able to transfer £1,000 of their allowance to their spouse or civil partner, resulting in a saving of £200 in tax paid.
The benefit will not be restricted in the year of marriage, so the full saving is available even if the couple only marry on 5th April. The relief will, however, not be given automatically, but a claim will need to be made online.