Tax reliefs for married couples and civil partners in the UK
How to reduce your tax bill as a married couple in the UK
Married couples and civil partners in the UK can benefit from two tax reliefs that aim to reduce their tax burden. These reliefs are the Married Couple's Allowance and the Marriage Allowance.
Married Couple's Allowance
Who is eligible?
The Married Couple's Allowance is available for couples born before 6 April 1935, where one partner is the sole earner or earns significantly more than the other. The couple must be married or in a civil partnership and living together.
How much is the relief worth?
The allowance is calculated at 10% of the lower earning partner's income, up to a maximum of £9,125 in the tax year 2022-23. This means the tax relief can be up to £912.50 per year.
How to claim?
To claim the Married Couple's Allowance, both partners must fill out a self-assessment tax return. If one partner doesn't normally complete a self-assessment tax return, they will need to register to do so.
Marriage Allowance
Who is eligible?
The Marriage Allowance is available for couples born after 6 April 1935, where one partner earns less than the personal allowance, which is the amount of income that can be earned before tax is due. The other partner must earn more than the personal allowance but less than £50,270. The couple must be married or in a civil partnership and living together.
How much is the relief worth?
The Marriage Allowance allows one partner to transfer 10% of their personal allowance to their spouse or civil partner. In the tax year 2022-23, the personal allowance is £12,570, so the Marriage Allowance is worth up to £1,257 per year. This means that the partner who earns less than the personal allowance can reduce their tax bill by up to £251.40 per year.
How to claim?
To claim the Marriage Allowance, the partner who earns less than the personal allowance must apply online through HM Revenue and Customs (HMRC).
Married couples and civil partners in the UK can benefit from tax reliefs that aim to reduce their tax burden. The Married Couple's Allowance is available for couples born before 6 April 1935, and the Marriage Allowance is available for couples born after 6 April 1935. Both reliefs can help reduce the amount of tax they have to pay, and couples can claim them by filling out a self-assessment tax return or applying online through HMRC. If you are unsure if you are eligible for either relief, you can consult a tax specialist or financial advisor.
At Gondal Accountancy, we provide a range of accounting and tax services for individuals and businesses. Our team of experts can help you navigate tax laws and regulations, and ensure that you are claiming all the tax reliefs you are entitled to. Contact us today to find out how we can help you.
Disclaimer
The content of this blog is provided for general information purposes only and should not be treated as tax, accounting, legal or financial advice. Tax rules, accounting requirements, legislation, regulations and official guidance can be complex and may change over time. As a result, some information in this article may become outdated, incomplete or no longer applicable after the date of publication.
The application of any tax, accounting or legal rule will depend on your individual or business circumstances. Before making any decision or taking any action based on the information in this article, you should seek advice from a suitably qualified tax professional, accountant, solicitor or financial adviser.
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