Married Couples - Allocation and Transfer

Introduction

• Married couples allowance was abolished from 6/4/00 onwards except for couples where one spouse was born before 6/4/35.

This screen is shared between husband/higher earning partner and wife/lower earning partner. In other words, any changes made for the husband/higher earning partner will automatically appear for the wife/lower earning partner. Allowance may only be transferred to the spouse if the recipient is unable to utilise it. The unused portion should be entered as an amount on the screen below. For example, if the husband/higher earning spouse is unable to use his allowance, enter the amount to be transferred to his/her wife/lower earning partner.  

FAQ - "Married Couples Allowance has been transferred to the Wife/lower earning partner but it still appears on his return. Why?"

• Surplus Allowance Transferred - either from Partner or to Partner from the drop-down list to transfer the surplus allowance to the partner. The surplus allowance would normally be transferred to the wife/lower earning partner but it is possible to transfer the other way if the allowance has been allocated to the wife/lower earning partner but his/her income is too low to utilize it.

Married Couple's Allowance

• Amount of surplus transferred - enter the amount of the allowance to be transferred to the partner. IRIS does not calculate this amount enter there amount to be transferred e.g. £1990 NOT the tax relief, for example, 10% of £1990 = £199
  
• Spouse or civil partner has higher income - before 5th December 2005 the allowance is claimed in the first place by the Husband. For new marriages and civil partnerships formed on or after 5th December 2005 the allowance is claimed by the spouse or civil partner who has the higher income. This box is only available for marriage records formed on or after 5th December 2005, otherwise it will be hidden. Ticking this box will move the claim for marriage couples allowance onto the spouse’s Return and tax computations.
  
• Allocation of Allowance - married couples allowance is given to the Husband/higher earning partner however, the wife/lower earning partner may claim half the minimum allowance or the couple may agree jointly to allocate the total allowance to the Wife/lower earning partner.

Select one of the following options from the drop-down list:

• n/a
• All
• Half
• None

If the allowance is being transferred to the Wife/lower earning partner do NOT also allocate the allowance to him/her.

Blind Person’s Allowance

• Amount of surplus transferred - Blind Persons Allowance may be transferred between partners if the recipient's income is too low to utilize the full amount.

Marriage Allowance

• Transfer surplus personal allowance – from 06/04/2015 it is possible to transfer 10% of your personal allowance between spouses, where neither spouse is liable to income above the basic rate. For Tax years prior to 2016 this field will be hidden.