In prior years, wife surrendered 10% of PA to husband as her only income was a small salary at the PT to accrue state pension year. This year is different; wife's salary and dividends take her over her PA (>£20k), so no Marriage Allowance transfer to husband was made on her tax return.
On his part, husband did not claim Marriage Allowance from wife. ie both returns were filed with no election to transfer part of PA.
HMRC have amended both returns allowing wife to surrender part of her PA to husband, even though wifes taxable income is > PA (inlcuding Dividend Allowance).
a) Have I misread the legislation?
b) In the hope I am not just having a Friday afternoon moment, and I have not misread the legislation, do I (and the taxpayers) have a duty to advise HMRC their error?
Has anyone else had this, thanks