A new tax relief worth up to £212 a year is coming into effect in April. It is a new Married Allowance, and is available to married couples and civil partnerships where:
1. the higher earner does not pay more than basic rate tax; and
2. the lower earner does not earn enough to use up all of their personal allowance
If both conditions are satisfied then the lower earner can transfer up to £1,060 of their personal allowance to the higher earner.
It should be noted that this is not an additional allowance, but is a transfer of allowance between two partners in a marriage or civil partnership.
To make use of the allowance you must register your interest, and this can only be done on-line at www.gov.uk/marriageallowance. Registration for next year is now open and will remain open throughout the 2015-16 tax year. You can register your interest at any time in the tax year and receive the full benefit of the allowance. One person per couple is required to register their interest and the tax office will then amend the recipient’s PAYE tax code.