Transferable Tax Allowance

From April 2015 married couples and civil partners have been eligible for a new Transferable Tax Allowance.

The Transferable Tax Allowance enables spouses and civil partners to transfer a fixed amount of their personal allowance to their partner.

The option to transfer will be available to couples where one partner is a basic rate taxpayer and the other partner has unused personal allowances for the year. One individual will be able to transfer £1,150 of their personal allowance to their spouse or civil partner. It will mean that the higher earner will be able to earn £1,150 more before they start paying income tax.

To benefit as a couple, the lower earner must have an income of £11,500 or less. The partner’s income must be between £11,501 and £45,000

For those couples where one partner does not use all of their personal allowance at the moment the tax saving will be up to £230.

Use this calculator to find out how much tax you could save if you applied for the allowance.