Registration for the new Marriage Allowance open for business

20 February 2015

The government has today opened registration for the new Marriage Allowance, a tax break for married couples, helping them save up to £212 a year.

Applying online the government says is straightforward. Couples can Register their interest to receive the Allowance now.

From 6 April 2015, more than 4 million married couples and 15,000 civil partnerships will be eligible for the tax break.

The Allowance means a spouse or civil partner who doesn’t pay tax, or doesn’t 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 doesn’t pay more than the basic rate of income tax.

Chancellor of the Exchequer 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.”

From April, 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.

Applying online is simple. 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.

Background

The Prime Minister, David Cameron, announced the allowance in 2013. Details were published in Budget 2014.

CIPP comment

New tax codes will be issued to employers where someone has transferred their allowance, resulting in 2 new suffixes for those currently on an ‘L’ suffix code:

  • ‘N’ for the spouse/civil partner transferring the allowance
  • ‘M’ for the spouse/civil partner receiving the allowance