Around one million married couples or civil partnerships have to yet claim up to £900 in tax relief, experts have revealed.
The Marriage Allowance forms just one of a number of tax advantages only afforded to couples.
Under the scheme, those married or in a civil partnership can transfer up to £1,190 of their Personal Allowance to their partner, providing they earn more than you.
This could reduce their tax bill by up to £238 in one tax year, which can be backdated to include any tax year since 05 April 2015.
So, do you or your partner qualify for relief? To be eligible, you must be married or in a civil partnership – cohabiting couples do not qualify. The lower earning partner must also either not pay income tax or generate an income below the personal allowance (currently £11,850). And finally, the higher earning partner must pay income tax at the basic rate, which means their income is between £11,851 and £46,350.
Aside from the Marriage Allowance, legal partners are also entitled to pass ownership of assets between them free of Capital Gains Tax and Inheritance Tax, regardless of the amount.
Commenting on the Marriage Allowance, the Institute of Chartered Accountants in England and Wales (ICAEW) said there’s certainly more than one reason to consider proposing ahead of Valentine’s Day this year.
“If you are considering proposing anyway, these tempting tax exemptions could settle your doubts,” said Sarah Ghaffari, ICAEW Technical Tax Manager.
For more information, or to find out how to apply, please click here. For advice on any of the tax reliefs available to you, please get in touch.