Marriage Allowance availability

When doing your self-assessment tax return for 2015/16, are you entitled to an extra tax saving from the new Marriage Allowance? If we are doing your tax return, don’t be offended if we ask about your husband or wife’s financial circumstances! If they have at least £1,060 of unused personal allowance and the income of the recipient spouse is within the basic rate band, 10% of the personal allowance can be shifted from one spouse to the other.

This claim will be able to be made on the tax return, or as an online claim for those who do not have to do a return. It cannot be made if claiming Married Couple’s Allowance though – it is an either or claim and usually Married Couple’s Allowance will be more tax efficient.

There should be planning opportunities when the new dividend allowance comes in and how this interacts with the marriage allowance.