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Self Assessment - Marriage Allowance

H & W have accidently breached MA income requirement, does the Allowance cease automatically?

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(Apologies - incorrect acronyms now corrected)

H & W initially claimed the Marriage Allowance in 15/16.  I have just been told that last year (15/16) W's income exceeded her reduced personal allowance because of interest payments she received from a (non ISA) fund account H & W share (their advisor had told her there is no tax to pay but that is another story......).

a) Does the MA automatically cease when the conditions are no longer in place, if so is it for full or part of the year?

b) If I need to advise HMRC do I write to them separately or is submitting an amended tax return with no MA made sufficient?

Many thanks - can't seem to spot detailed rules anywhere!




Replies (4)

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By Tim Vane
12th Jul 2017 14:56

There are no income limits for MCA (other than it being subject to automatic taper), and it has to be claimed each year anyway.

EDIT - are you sure you meant MCA?

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By Paul D Utherone
12th Jul 2017 15:08

If you mean the 10% transfer then she may have a liability, but unless one of them has breached the BR band then the transfer remains.

As it's interest is the Savings Allowance / 0% band a help or is she over that as well? If not then there should be no problem. She has a liability but it falls in the 0% band

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By lionofludesch
12th Jul 2017 15:20

Because the OP says MCA was claimed "a few years ago", I'm guessing that this is an Old Folk's MCA allowance query.

But I'm still not clear on what the question actually is.

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By emanresu
13th Jul 2017 18:39

The law states that exceeding the Personal Allowance does not disqualify a *UK* taxpayer's application for an MAT. It just reduces the nett benefit to the couple.

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