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Government confirms new married couples' tax allowance

 

More than four million married couples and civil partners will be entitled to a new transferable tax allowance, the Government has confirmed.

 

Under the scheme, eligible spouses and civil partners will be able to transfer £1,000 of their personal income tax allowance to their partner, where one is a basic rate taxpayer and the other earns less than the income tax personal allowance.

 

The measure is set to come into effect between 2015 and 2016, and will allow the higher earning partner to earn an additional £1,000 before paying income tax, meaning a potential saving of up to £200 a year.

 

Couples will be eligible from the first year of marriage, and claims for the allowance will be made online.

 

The confirmation of a married couples' tax allowance is one of a series of recent Government measures, including the announcement by Chancellor George Osborne of his intention to freeze fuel duty until after 2015, subject to sufficient savings being made elsewhere.