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'No tax break for married couples' in forthcoming Budget

 

The Chancellor's Spring Budget will not include the introduction of a new tax break for married couples, according to recent reports.

 

The news follows recent speculation that a tax allowance for married couples with children, which forms part of the Coalition agreement, would be announced in the 2013 Budget, to be presented by Chancellor George Osborne on Wednesday 20 March.

 

However the measure, allowing married couples and civil partners to transfer part of their tax-free personal tax allowance to their partner, is still expected to come into effect by 2015.

 

Under the plans, a 'stay at home' spouse or civil partner will be able to transfer around £750 of their annual tax-free personal allowance to their partner, equating to a tax reduction of around £150 a year for basic rate taxpayers.

 

Matthew Sinclair, chief executive of the TaxPayers' Alliance, argued that the complexities of the tax system can discriminate against poorer families.

 

'Introducing an allowance that lets families share some of their personal allowance would help tackle poverty and reduce the perverse disincentives created by our dysfunctional tax code', he commented.