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Hi sir.
Question number 5 of the practice question on page 226 of the lecture notes. in your Answer at the back you computed for the event of marriage allowance and took the same figure(4250) that was born out of the event to calculate for the second scenario of 50/50 split. well, I thought we should treat mr Mature separately and then apply the two events to his actual tax liability(4500) and advice on the scenario that give highest tax saving. or does it always follow that civil partners have the automatic allowance(marriage allowance) as long as one is basic rate taxpayer and the other pays nothing? as in it require no election.
thanks.If you showed the saving that would have been achieved from splitting the income between them as compared to taking no action whatsoever that is fine – the answer given simply identifies the additional saving that would have been achieved from the split ownership as compared to making the election. The election will be made and therefore the liability would never be £4,500 it would be £4,250 and hence the answer shown.
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