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TRANSFER OF PERSONAL ALLOWANCE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › TRANSFER OF PERSONAL ALLOWANCE

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 19, 2021 at 11:37 am #614766
    Yovin
    Participant
    • Topics: 25
    • Replies: 1
    • ☆

    Hi Sir,
    If a transferee spouse is a basic rate taxpayer and has only dividend income, when receiving the marriage allowance of £1250 from the transferor , its tax liability will be reduced by :

    (a) 1250×20% = £250
    OR
    (b)1250×7.5% =£93.75

    March 24, 2021 at 5:34 pm #615139
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The tax credit will be at basic rate and equal to £250 – but remember it cannot create a tax repayment

  • Author
    Posts
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