Household Bills
Autumn Statement 2013: Married couples can transfer £1k of personal allowance to partners
Spouses and civil partners will be able to transfer £1,000 of their income tax personal allowance to their partners under plans unveiled by Chancellor George Osborne.
From 2015-2016, couples where neither partner is a higher or additional rate taxpayer will be able to transfer, with the move worth £200 to eligible couples.
Choosing to transfer will mean that one spouse will pay tax on £1,000 less of their income.
Osborne said the transferable amount will be increased in proportion to the personal allowance.
The measure was announced in the Autumn Statement on Thursday.
Unbiased.co.uk chief executive Karen Barrett said:”While there was no boost in the personal tax allowance from the Chancellor, which is still set for £10,000 next April, his announcement for a married couples allowance, of which £1,000 can be transferred to the other spouse from April 2015 will be a welcome addition for basic rate taxpayers, a saving of £200 a couple.
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“Those with spouses and partners should ensure they are making the most of both allowances and the tax reliefs available to them.”