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Marriage allowance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Marriage allowance

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarTax Tutor.
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  • Author
    Posts
  • September 28, 2018 at 8:04 am #475613
    Avatarpipacs
    Participant
    • Topics: 4
    • Replies: 1
    • ☆

    I have 2 questions:

    1. If one spouse earns less than the personal allowance but is just under the threshold, but it is not enough to transfer 10%, would HMRC allow this?

    2. If marriage allowance is set up in the current year to continue in the future, will it automatically stop transferring the allowance if the lower earning spouse goes above the personal allowance threshold (11850)?

    Many thanks!

    October 2, 2018 at 12:31 pm #476135
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    1. The fixed amount of the PA must be transferred if the election is made – which would mean that the transferor will have to pay some tax

    2. The Marriage Allowance is available provided neither spouse is a higher
    rate or additional rate taxpayer so the election would need to be withdrawn

    PA is £11,500

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