How does the interaction between the new marriage allowance (upto 10% of a personal allowance) and the new zero rate on £5000 of savings interest work for 2015/16?
The married couple clients have following income tax profile:
H: basic rate taxpayer with gross income of about £30k from state/occupational pensions and dividends.
W: zero rate taxpayer with gross income of about £10.5k from part-time earnings of £8k and savings interest of £2.5k
Can W use marriage allowance to transfer £1060 to H to reduce her PA to £9540 and still benefit from zero rate on first £5k of gross savings interest?
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SAIM1112 ..
http://www.hmrc.gov.uk/manuals/saimmanual/SAIM1112.htm
"From 6 April 2015 the starting rate for savings limit is the individual’s personal allowances plus the starting rate band of £5,000."