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Marriage Allowance Query

Is Marriage Allowance available under the following circumstances?

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The HMRC rubric states that "to benefit as a couple, you need to earn less than your partner and have an income of £11,850 or less. Your partner’s income must be between £11,851 and £46,350 (£43,430 in Scotland) for you to be eligible".  I have a client couple who satistied those conditions in 2016/17, except that for the husband, there was a (one-off) Capital Gain, so that the total Income plus  Taxable Capital Gain did exceed £46,350, and they live in England.  Can the wife transfer one-tenth of her personal allowance to the husband under these circumstances?  The Capital Gain, of course, is taxed partly at 18% and partly at 28%.  Many thanks! 

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By Duggimon
20th Apr 2018 11:48

I don't believe capital gains affect the marriage allowance, though I'm only 90% sure, I stand to be corrected.

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By thevaliant
20th Apr 2018 12:02

My understanding is that you are entitled to the marriage allowance as long as you are a basic rate income tax payer (and the spouse earns less than than the PA).

Therefore, other forms of revenue (Capital gains) won't come into it, and indeed you *could* have a salary more than the basic rate threshold yet still claim it.

I claim it. My gross salary is more than the basic rate threshold, but the reason my wife doesn't work is that she is blind. So I FIRST claim the BPA (Blind Persons Allowance) which then keeps me in the basic rate income tax band, and THEN transfer the 10%.

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