tax breaks for married couples

What are the Tax Breaks for Married Couples?

07/02/2023tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

When you are in a civil partnership or living in the UK as a married couple, it is always beneficial to be aware of the tax breaks for married couples. As this will help you to get the most benefits from the allowances and other such tax breaks. This will allow reducing the tax bills as well. The tax breaks in the form of allowances if you meet the criteria will tend to increase in terms of benefits every year. Especially when a new tax year begins from the 6th of April normally, you will find an increase in the tax breaks as well.


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What are Tax Breaks for Married Couples in the UK?

It is a common understanding among married couples or partners who are living in a civil partnership that an amount of up to £1,260 can be transferred to the account of your partner. This is allowable because it comes under the category of your personal allowance. The personal allowance in the tax year 2023 is an amount of £12,570 in the UK. This is also known as the basic amount on which you will not have to pay any tax. Now within a tax year, the amount of £252 can be reduced and this will work as a tax break for your partner.

However, there is a certain criterion that you will have to meet in order to qualify for this kind of tax break. This could possibly include the following:

  1. Your income is not even equal to the amount of personal allowance and you do not have to pay any tax in this basic amount that you are learning. This means you are earning less than £12,570.
  2. You are living in a civil partnership or you are a married couple, who is not getting any tax break already like the marriage allowance.
  3. Your partner is into paying the basic rate of the tax. Which further explained that your partner is earning between the limit of £12,571 and £50,270.

Moreover, this also explains that the partner with more earnings will get the add-up of £1,260 in the amount of their basic personal allowance.


How to Apply If I Meet the Criteria?

Once you ensure that you are meeting the criteria to apply for the marriage tax breaks, you can simply go to the online portal available at the government HMRC. You will have to keep the proof of your identification and your national insurance number for the completion of this process. You also have the option to get in touch over the phone call if you are not comfortable with applying online. You might have to deal with the regular call charges in this scenario.


Can I Claim Tax Breaks from Previous Years?

People often enquire about whether or not it’s possible to make a claim about the previous years. Because sometimes what happens, is the years are passed with unawareness and when you finally get to know about the tax breaks, you aim to make the claim for previous years as well. In this case, you will have to consider the criteria for each year. You will have to be very careful about the taxpayer’s basic tax rate, and non-taxpayer rate and the threshold for every tax year will be different. You will only be allowed to backdate the claim of tax breaks for a limit of four years.


What are the Tax Breaks After the Partner has Demised?

In the case of a partner has demised, you are allowed to apply for the tax breaks if you can meet any other criteria. You will get the benefits, but the number of benefits might get reduced in this case. The backdate applying for the tax break is still a limit of up to four years. You can do it over a phone call just like the normal case and be considerate about the timings that are restricted for the calls. This is why several people find online applying easy because phone calls have restrictions on timings and days.


The Bottom Line

Now that you have gathered a fair amount of information about tax breaks for married couples, we can bring the discussion towards wrapping up. The tax breaks for married couples are beneficial and you can even go back in years and apply if you meet the criteria in every tax year. All you will have to be considerate of is the turnover and tax rates of relevant tax years. It is imperative to know that the back date can go up to a limit of four years only. Even after one of the partners has demised, you can get in touch with HMRC and check whether you can still apply. In most of cases, if you meet the criteria, you will keep getting the benefits just like you were getting with your partner alive.


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Disclaimer: The general information provided in this blog about tax breaks for married couples includes text and graphics. It does not intend to disregard any of the professional advice.

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