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From 2000-01 onwards, it is available only where one party was born before 6/4/1935. A new children's tax credit was introduced in 2001-02 to replace it.
Married couple's allowance (MCA) is given as a rate-restricted relief. Married couple's allowance is given to the husband/higher earning partner. His/her wife/lower earning partner may claim half the basic allowance or they may jointly agree to allocate the whole basic allowance to the wife/lower earning partner. It makes no difference to their overall tax bill.
If a higher level of MCA is due because the older partner is aged 65 or more, the extra amount cannot be allocated to the wife/lower earning partner; it will remain with the husband/higher earning partner. If the recipient has insufficient tax borne to cover the MCA, the unused portion may be transferred to the partner; this includes any extra age-related MCA given to the husband/higher earning partner.
A higher level of MCA is given where the older partner is aged 65-74 and higher again if aged 75+. The person must have reached the age before the beginning of the tax year (6th April) to qualify for the higher allowances.
|
Rate |
Basic |
Aged 65-74 |
Aged 75+ * |
Income Limit |
2017/18 |
10% |
3,260 |
N/A |
8,445* |
28,000 |
2016/17 |
10% |
3,220 |
N/A |
8,355* |
27,700 |
2015/16 |
10% |
3,220 |
N/A |
8,355* |
27,700 |
2014/15 |
10% |
3,140 |
N/A |
8,165* |
27,000 |
2013/14 |
10% |
3,040 |
N/A |
7,915* |
26,100 |
2012/13 |
10% |
2,960 |
N/A |
7,705 |
25,400 |
2011/12 |
10% |
2,800 |
N/A |
6,295 |
24,000 |
2010/11 |
10% |
2,670 |
N/A |
6,965 |
22,900 |
2009/10 |
10% |
2,670 |
N/A |
6,965 |
22,900 |
2008/09 |
10% |
2,540 |
6,535 |
6,625 |
21,800 |
2007/08 |
10% |
2,440 |
6,285 |
6,365 |
20,900 |
2006/07 |
10% |
2,350 |
6,065 |
6,135 |
20,100 |
2005/06 |
10% |
2,280 |
5,905 |
5,975 |
19,500 |
2004/05 |
10% |
2,210 |
5,725 |
5,795 |
18,900 |
2003/04 |
10% |
2,150 |
5,565 |
5,635 |
18,300 |
2002/03 |
10% |
2,110 |
5,465 |
5,535 |
17,900 |
2001/02 |
10% |
2,070 |
5,365 |
5,435 |
17,600 |
2000/01 |
10% |
2,000 |
5,185 |
5,225 |
17,000 |
1999/2000 |
10% |
1,970 |
5,125 |
5,195 |
16,800 |
1998/99 |
15% |
1,900 |
3,305 |
3,345 |
16,200 |
1997/98 |
15% |
1,830 |
3,185 |
3,225 |
15,600 |
1996/97 |
15% |
1,790 |
3,115 |
3,115 |
15,200 |
* Aged 77+
*From 2000-01 MCA is available only to those born before 6/4/1935.
If the taxpayer has total income above the income limit the higher allowances are withdrawn by £1 for every £2 that the person's total income exceeds the income limit. Married couple's allowance is withdrawn only after the higher personal allowance (if any) has been withdrawn. Since MCA is given based on the age of the older spouse, it is possible to have the basic personal allowance but qualify for higher MCA.
For example, if a 73 year old man has total income of £20,000 in 1999-2000, (has a 76 year old wife/lower earning partner) the MCA will be reduced from £5,195 to £4,980 (Personal allowance of £5,720 will be reduced to basic level of £4,335.)
Income limit adjustment: 20000 - 16800 / 2 = 1600
Personal allowance: 5720 - 1600 = 4120 which is 215 less than the basic allowance of 4335
MCA: 5195 - 215 = 4980
If the husband/higher earning partner does not have sufficient tax borne to cover all or part of his/her MCA, the unused portion may be transferred to his wife/lower earning partner. If he/she has received a higher level of MCA, the MCA transferred to the wife/lower earning partner will not be reduced regardless of the level of his wife's/lower earning partners total income.
For example the husband/higher earning partner receives £5,225 of MCA but has no taxable income, the whole £5,225 is transferred to his/her wife/lower earning partner who has £100,000 of taxable income; she/he will retain the full £5,225.
The difference between these options is not always apparent at first sight. The allocation of allowances between husband/higher earning partner and wife/lower earning partner is limited to the basic level of the allowance (£2,670 in 2010-11). Any higher allowance is given to the husband/higher earning partner only.
The basic allowance will be allocated to the husband/higher earning partner. His/her wife/lower earning partner may claim that half the allowance be allocated to her/him or they may jointly agree to allocate all of the basic allowance to her/him.
Transfer of allowances can only take place if the recipient's income is so low that the allowance is more than the tax borne. The unused amount, including any unused higher age allowance may be transferred to the spouse.
The MCA is reduced in the year of marriage. One twelfth of the allowance is given for each month (or part) that the couple are married in the fiscal year. For example, date of marriage 1/10/98, the allowance is 7/12 x 1,970 = £1,149.17. If the date of marriage had been a week later the allowance would have been 6/12 x 1,970 = £985.
It is possible to claim the full allowance in the year of marriage if the preceding marriage ended in the same tax year. In reality this is unlikely to occur but it may happen where one spouse dies and the surviving person remarries in the tax year.
Up to and including 1999-2000, the husband/higher earning civil partner may choose to claim additional personal allowance for a child in the year of marriage instead of MCA.
None of the MCA may be allocated to the wife in the year of marriage.
The full MCA is given in the year of separation or in the year that one spouse dies. It ceases to be available thereafter.
The wife/lower earning partner is given widow's bereavement allowance in the year of her/his husband's/higher earning partners death but none of the MCA may be allocated to the wife/lower earning partner in that year.
The husband/higher earning partner cannot claim Additional Personal Allowance (APA) in the year of separation (except for an incapacitated wife/lower earning partner) but his wife/lower earning partner can make an APA claim.
It is possible for unused MCA to be transferred to the spouse in the year of separation or death.
The MCA may be claimed up to 1999-2000 where the separation occurred prior to 6/4/90, the couple have not divorced and the husband/higher earning partner has maintained the wife/lower earning partner on a voluntary basis (ie no deduction claimed for maintenance) since separation.
