This new tax allowance for couples was announced in the 2013 Autumn Statement and comes in to effect from 6 April 2015 (2015/2016 tax year).

The allowance is designed to help where one spouse does not earn enough to fully utilise their personal allowances of £10,500 (in the 2015/2016 tax year). The maximum amount that can be transferred is £1,060, which means, for the receiving spouse, a tax saving of up to £212.

However, where the receiving spouses income exceeds the higher rate tax threshold of £42,385 (2015/2016), the ability to transfer allowances is not available.

Since the announcement back in 2013, the coverage of this new allowance has gone very quiet and it worries me that people who are entitled to claim, do not, and therefore miss the boat.

If you have any questions or queries on this, please do not hesitate to contact me on steve.bird@viewpointbusiness.co.uk.

01245 258 689

info@viewpointaccountants.co.uk