complete financial know how

Could my Accountant really recommend a good Valentines gift?

My Mate says… if I’m struggling for a Valentines gift then I should speak to my Accountant.

If you wanted to think outside of the box for a Valentines Gift this year then we have a unique suggestion for you!

HMRC have introduced a tax relief called the Marriage Allowance which allows £1,250 of your Personal Allowance to be transferred to your Husband, Wife or civil partner – reducing their tax liability by up to £250 in the current tax year.

This is not an automatic relief; it must be applied for and there are certain criteria that have to be met:

  • You must be married or in a civil partnership, if you’re living together but are not married then this doesn’t count.
  • You do not pay Income Tax or your income is below your Personal Allowance (£12,500 for the current tax year).
  • Your partner pays Income Tax at the basic rate, meaning that their income is under £50,000.
  • You both must have been born on or after 6th April 1935.

The relief may not be restricted to the current year – this is the gift that keeps on giving! You can back date your claim by up to four years so there could be potential tax savings of up to £1,150.

We can assist you with this claim so if you have any queries please get in touch with our Tax Team.

Share Now:

Posted in: My Mate Says