Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Autumn Statement: £1k tax transfer introduced for married couples

1 Comment
Autumn Statement: £1k tax transfer introduced for married couples

The government has confirmed that individuals can transfer up to £1,000 of their personal tax allowance between married couples and civil partners from 2015.

From April spouses who do not work will be able to transfer £1,000 of their personal tax allowance to their husband or wife or civil partner, assuming neither is a higher-rate taxpayer and one is earning less than the personal allowance.

Four million families will benefit, Osborne said.

The measure could make four million couples who are eligible basic rate taxpayers up to £200 better off annually, but will be completely withdrawn at higher-rate taxpayers, making some couples worse off after a pay rise, for example.

The tax break will cost the government up to £0.7 billion per year.

The proposals were announced by Downing Street ahead of the Conservative party conference in September.

In his Autumn Statement, chancellor George Osborne said: 'The new transferable tax enables people to transfer £1,000 [of their personal tax allowance] to their wife, husband or civil partner. This is just the start.'

To benefit from this one person must earn under the personal allowance, currently at £9,440 but rising to £10,000 in April 2014, and the other must not earn more than the basic rate threshold.

Osborne also announced the transferable tax allowance will increase in line with the personal tax allowances.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter