Government launches tax break for married couples
The government today launched a tax break for married couples. Registration opened today for the new marriage allowance which can help married couples to save up to £212 per year.
Married couples who register will receive the tax break for the tax year starting 6th April. The government has stated that over four million married couples and 15,000 civil partnerships will be eligible for the tax break. The tax break applies to couples in a marriage or civil partnerships were one partner earns less than £10,601 and the other partner earns between £10,601 and £42,385.
Prime Minister David Cameron stated “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.”
The allowance allows the partner who doesn’t pay tax or doesn’t pay tax above the basic rate to transfer up to £1,060 of their personal tax-free allowance to the other partner so long as they don’t pay more than the basic rate of income tax.
The initiative has been criticised however as it will only apply to a third of married couples and only one in six families with children.
Online registration is straightforward, with only one partner within the couple needing to apply to transfer the allowance to their spouse or civil partner. HMRC will then provide a new Pay As You Earn (PAYE) tax code to the recipient.
Source: https://www.gov.uk/government/news/registration-opens-for-new-married-couples-tax-break