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Is marriage allowance transfer 'all or nothing'?

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Marriage allowance is clearly all or nothing - you transfer the full 10% and pay the tax due if that then puts your income beyond the remaining personal allowance. Then you get the money back from your spouse once they get it as part of their refund.

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29th Jun 2019 20:53

Would it not have made more sense to understand the mechanics or review the legislation before advising your client?

It is all or nothing. And isn't always exactly 10%.

You said "her husband receives the same amount back" but as a couple aren't they still better off overall, the wife getting a smaller bill than the husband's refund/reduction in liability?

Or have you advised her to apply when there is no overall benefit to them as a couple?

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to Not Anonymous
30th Jun 2019 11:49

Thanks for stating the obvious - I'll assume that you've just missed the point I was trying to make.

There was no question but that the transfer was advantageous for them as a couple. I had simply expected that only the unused portion of the allowance would be transferred since it was less than the full 10% marriage allowance.

In all other instances that we have dealt with in our firm to date, the full 10% was unused and available for transfer.

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to Bluesation
30th Jun 2019 12:08

Bluesation wrote:

Thanks for stating the obvious - I'll assume that you've just missed the point I was trying to make.

There was no question but that the transfer was advantageous for them as a couple. I had simply expected that only the unused portion of the allowance would be transferred since it was less than the full 10% marriage allowance.

In all other instances that we have dealt with in our firm to date, the full 10% was unused and available for transfer.

You did say this in your original post,

"her husband receives the same amount back so they are no better or worse off"

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By Rweaver
29th Jun 2019 21:32

This is hilarious.

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to Rweaver
30th Jun 2019 11:54

It was more of a nuisance than hilarious for our client since she had to pay over some tax and then wait for her husband to get it back as part of his refund.

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30th Jun 2019 12:41

You were a “rather surprised” that the system worked the way the legislation was written rather than the way you felt it ought to work? Hmmm. Probably best to understand the legislation before passing on the advice.

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By Rweaver
30th Jun 2019 12:48

I assume you realised your sheer stupidity and so edited the original question. Shame.

Quite how you can have “clients” is alarming.

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29th Jul 2019 16:39

Just piggy-backing off the discussion that was had last month.
I had always understood that the marriage allowance was 'all or nothing' and have arrived at this post as I have googled the exact same.
Why is it therefore that on my client's tax code notice for 2018/19 the transfer of allowance is £581? Why is it not £1,190? My tax software (taxcalc) agrees with the all or nothing approach so what is this figure doing in their tax code??? I'm going to have to phone HMRC methinks.
I don't do the tax for their spouse so can't make sure they're equalled out either.
Any help or suggestions greatly appreciated.

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