By Ian Holloway, head of legislation and compliance at Cintra HR & Payroll Services
There are two allowances that may apply in addition to the Personal and Marriage Allowance:
The Married Couples’ Allowance (MCA)
This is an age-related allowance that applies where one of the partners in a marriage or civil partnership was born before 6 April 1935. The value of the MCA is subject to a tapered restriction where income exceeds £27,700, the maximum being £8,355, the minimum £3,220.
The Blind Person’s Allowance
This is a conditional allowance that may apply if the individual or their spouse is registered blind (in England and Wales) or severely sight-impaired (in Scotland and Northern Ireland). For 2015-16 tax year, the value of the allowance was £2,290.
In both cases, if the recipient does not fully utilise the income tax benefits of the allowance, they are able to transfer this to their spouse or civil partner. In this way, their tax liability can be reduced. However, this transfer of excess allowances is not always an automatic process and taxpayers that believe they may benefit from transferring surplus allowances must complete form 575(T). When completed, this should be sent to:
HM Revenue and Customs
Pay As You Earn Self-Assessment
The 2015-16 form is now available on the Gov.uk website.
Posted on 27th May 2016 by Jerome Smail
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