Jaskarn Pawar Independent Financial Planner talks about the new Marriage Allowance …
There are a couple of new allowances that come in to effect for this new 2016/17 tax year, i.e. as of 6 April 2016.
The first is the Marriage Allowance which is another good move by the Government aimed to benefit those couples that are in a marriage or civil partnership.
The Marriage Allowance allows one partner to transfer 10% of their basic personal allowance (which is the amount on which an individual pays no income tax, £11,000 in 2016/17) to the other partner. So this would be useful where, for example one partner earns £5,000 a year and the other partner earns £50,000 a year. In this situation the partner who has some unused allowance can transfer some of this to their partner who can use it to save money on income tax.
What is even better, you can back date your application to 6 April 2015 if you were eligible for this in the last tax year but haven’t claimed it yet.
For more about this subject contact – Jaskarn Pawar, Independent Financial Planner on 01604 211234 or firstname.lastname@example.org