TRANSFER OF PERSONAL ALLOWANCE

This topic has 1 reply, 2 voices, and was last updated 5 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: 26
- 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: 3960
The tax credit will be at basic rate and equal to £250 – but remember it cannot create a tax repayment
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.