LONDON, Sept. 7, 2020 /PRNewswire/ — The Marriage Allowance was introduced on the 6th April 2015 and allows married couples to share their personal allowance – under certain conditions – however millions of couples are yet to claim.
“There are many couples that think they are either not entitled, or it is a difficult process to claim,” said Rebate Gateway, a tax consultancy in London.
Marriage Allowance enables an individual to transfer part of their Personal Allowance to their spouse/civil partner, with the intention of reducing the couple’s overall liability to the tax man.
The Personal Allowance is currently £12,500 and the Marriage Allowance transfer is currently fixed at £1,250 which as a result allows for a reduction in the couple’s tax liability by £250.
Rebate Gateway, continued: “As with most tax allowances, there are conditions and rules that need to be met, the most important of which are:
- Both individuals need to make an election
- Both individuals must not be liable to tax at the higher rate (higher rate tax currently starts at income in excess of £50,000)
- The individual ‘giving up’ the £1,250 allowance must have been born after April 5, 1935.”
It is important that couples check if they can claim, given that due to furlough and redundancies caused by the pandemic, many more couples could now be eligible.
Backdated Rebate Claims
Along with claiming entitled to marriage allowance, millions of eligible couples would also be able to backdate a claim and receive up to £1188 as a one of rebate to cover the previous 4 years of allowance.
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SOURCE Rebate Gateway