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Tax allowances

Community Veteran
Posts: 7,906
Thanks: 588
Fixes: 8
Registered: 02-08-2007

Tax allowances

Advice required please.
Self & My wife have a Personal Tax allowance (From April) of £9940  less our State Pension.
About a third of my wife's allowance does not get used. Is there any way the unused portion can be transferred to me ?
5 REPLIES
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Tax allowances

Not sure but you may be able to use the "575" process providing you are still living together.
http://www.hmrc.gov.uk/manuals/inmanual/IN485.htm
think its still current
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: Tax allowances

It depends on age, but is unlikely to be much anyway.
The normal personal allowance which you've referred to is just that, personal and non-transferable.
There is another allowance for married couples where one is aged over 75 (roughly) which can be part-transferred. It is though only a partial lower-rate allowance.
Worth checking if you're eligible for it. See: http://www.hmrc.gov.uk/incometax/married-allow.htm
The other thing to do is it look at any "moveable" income and ensure it goes to your wife, such as interest on investments. These can then be paid "gross" i.e. tax-free, I think the relevant form is called R85.
Community Veteran
Posts: 7,906
Thanks: 588
Fixes: 8
Registered: 02-08-2007

Re: Tax allowances

Thanks for the info.
We are still living together after 43 years and hope we can add a few more to these.
My wife gets nearly  70% of the state pension so is well below her allowance.
She is lucky to get that, it was only by a chance meeting with a friend years ago that they decided to pay the full NI amount rather than the reduced married Women's NI.
Had this happened she would have got nothing until I reached 65.
Something that many Women who reach retirement are finding to their cost !
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: Tax allowances

The rules on "qualifying years" for state pensions, especially for women, have seen some changes recently.
It's worth checking it all out as it doesn't all happen automatically and some "arrears" or "missing years" need to be claimed or partly paid for.
It's also very age-related.
This is a reasonable place to start: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/Voluntar...
nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Re: Tax allowances

I lost out on the married man's allowance by less than three months. You have to be born before 6th April 1935 and I was born at end of June  Cry