Couples can register for tax break

Published: Friday 20th February 2015 by The News Editor

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Married couples can now register for a new tax break which will help them save up to £212 a year on their tax bill.

The Government has opened registration for the marriage allowance and couples can register their interest to receive it at

From April 6, more than four million married couples and 15,000 civil partnerships will be eligible for the tax break, which was announced by Prime Minister David Cameron in 2013.

The allowance means a spouse or civil partner who does not pay tax, or does not pay tax above the basic rate of income tax, can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner, as long as the recipient of the transfer does not pay more than the basic rate of income tax.

From April, HM Revenue and Customs (HMRC) will contact those who have already registered for the marriage allowance to apply. People can register at any point in the tax year and still receive the full benefit of the allowance.

In order to receive the tax break, one person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their Pay As You Earn (PAYE) tax code.

Chancellor George Osborne said: “We made a promise to introduce a recognition of marriage into our tax system – and now we’re delivering on that promise.

“This includes updating the tax system so that it recognises marriage and civil partnerships.

“Our new marriage allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.”

Mark Giddens, head of private client services at UHY Hacker Young, said: “Regardless of the rights or wrongs of using the tax system to reward marriage – and the fact that some will see this as a welcome development – one has to question the logic of adding to our already very lengthy tax code, and the associated bureaucracy, in order to benefit a relatively small group of people to the tune of £4 a week.”

Published: Friday 20th February 2015 by The News Editor

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