- Published: Wednesday, 25 February 2015 17:57
- Written by Holly Masters
This week the government has opened registration for the new Marriage Allowance, a tax break for married couples helping them to save up to £212 in tax per year.
A mere week after Valentines Day and David Cameron has released this policy based on the ‘valuing commitment’ of marriage to society. Perhaps this has encouraged men and women around the UK to propose based on the prospect of a potential tax break?
From April 2015, the allowance means that a spouse or civil partner who doesn’t pay tax - therefore not earning at all or is earning below the basic rate threshold (£10,600) – can transfer up to £1,060 of their personal tax free allowance to a spouse or civil partner, as long as the recipient of the of the transfer doesn’t pay more than the basic rate of income tax.
Therefore this is not relevant for those who are married/in a civil partnership with higher rate tax payers, as they will not be applicable.