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transferable marriage allowance

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If a wife has £8,500 salary and £20,000 dividends does this prevent the 10% transfer?  I believe it is available but can anyone confirm that the fact that her overall income is above the PA level will not prevent it be claimed?

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By Duggimon
14th Nov 2016 11:43

HMRC say it's not allowed but they are wrong, the legislation permits it.

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Euan's picture
By Euan MacLennan
14th Nov 2016 12:50

The law is set out in s.55C ITA 2007:

55C Election to reduce personal allowance

(1) An individual may make an election for the purposes of section 55B if—
...
(c) assuming the individual's personal allowance was reduced as set out in section 55B(6), the individual would not for that year be liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings, and ...

So, the transferor spouse is indeed entitled to elect provided that she is not liable to tax at any higher rate.

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Replying to Euan MacLennan:
RLI
By lionofludesch
14th Nov 2016 18:24

Here's a surprise ....

(4)“The transferable amount”—

(a)for the tax year 2015-16, is £1,050, and ........

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RLI
By lionofludesch
14th Nov 2016 12:58

It's a crap allowance and HMRC clearly don't want anyone to claim it. I read recently that they estimate that some 70% of folk eligible for it haven't claimed it.

It's a disgrace.

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Replying to lionofludesch:
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By emanresu
14th Nov 2016 18:09

lionofludesch wrote:

It's a crap allowance and HMRC clearly don't want anyone to claim it. I read recently that they estimate that some 70% of folk eligible for it haven't claimed it.

Agreed. A George Osborne "cunning plan" that as far as its implementers are concerned is as attractive as a dog turd[***] in a glove.

And that's before one tries to interpret "eligible". Many will be eligible - but far fewer will actually benefit!

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By emanresu
14th Nov 2016 18:00

It'll be available - but it will result in her paying more tax.

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By WillowTree
24th Nov 2016 15:08

I've made the claim on the husband's return as well as the wife's, which both went in last week, and the husband has had his reapyment, less the marriage allowance part. I have just been told on the phone that entries on the returns are not enough, a separate claim has to be made for it. This is wrong, isn't it? I'm sure I've done others where the credit has just gone through with no problem.

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Replying to WillowTree:
RLI
By lionofludesch
24th Nov 2016 15:17

WillowTree wrote:

I've made the claim on the husband's return as well as the wife's, which both went in last week, and the husband has had his reapyment, less the marriage allowance part. I have just been told on the phone that entries on the returns are not enough, a separate claim has to be made for it. This is wrong, isn't it? I'm sure I've done others where the credit has just gone through with no problem.

It's embarrassing that a Government organisation would scrap amongst the gutters for crumbs.

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