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.
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.
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