MCA GUIDE: In fact, the married couples allowance rules do not increase the tax threshold.
But, claiming MCA could reduce the amount of taxation elderly couples pay each year.
In short, it must be a husband and wife relationship or a couple living in a registered civil partnership.
Qualification would then depend on one partner being born before the 6th of April 1935.
MCA has allowance restrictions for tax purposes. That means it does not increase the total amount you can earn before you start paying Income Tax. But, it would reduce the total bill by 10 per cent of the allowance that you have entitlement for.
The age-related rules of Married Couple’s Allowance depend most on the date you married or started living as civil partners. The next determining factor is the age of the eldest member.
The income of the husband determines MCA rates in marriages taking place before the 5th of December 2005. But, the highest earner’s income gets used for marriage and civil partnerships after this cut-off date.
Note: Partners born on or after the 6th of April 1935 may qualify to claim the Marriage Allowance instead.
Married Couple’s Allowance Rates
These are the current Married Couple’s Allowance rates for the 2022 to 2023 tax year. The concession could make your tax bill smaller by an amount between £364 and £941.50 per year.
The allowance comes on a pro-rata basis once you marry or register the civil partnership. It would be available for the rest of that particular tax year.
But, if one partner dies or you get divorced or separated, the allowance still continues to the end of the tax year. That also applies if spouses or civil partners separate through circumstance other than a formal decision.
Married Couple’s Allowance Eligibility Criteria
Claiming the Married Couple’s Allowance 2022/23 could lessen the tax charge by £364 up to £941.50 each year. To claim MCA all these 3 rules must apply to your situation:
- You and your spouse are in fact married or you live together in a civil partnership.
- You continue to live with your spouse or civil partner while you claim MCA.
- At least one of you were born before Saturday the 6th of April 1935.
Eligibility to claim Married Couple’s Allowance applies even when partners cannot live together. Reasons for being unable to live as regular partners can include:
- Situations of illness or because of old age. An example could be where one spouse or partner lives in residential care.
- One partner works away from home or posted abroad in the armed forces.
- Imprisonment, works training, or specialist education.
>Note: MCA is transferable to your spousal, or civil, partner. The online Married Couple’s Allowance Calculator works out whether you are eligible and qualify to claim extra MCA from your tax bill.
How to Claim Married Couple’s Allowance
Those who complete the Self Assessment process can claim by filling in the Married Couple’s Allowance section of their tax return.
Claimants who do not fill in a Self Assessment tax return should contact HM Revenue and Customs. Supply them with:
- Details of your marriage or civil partnership ceremony.
- Full details of your spouse or civil partner. HMRC will need their date of birth as well.
Transfer Unused Married Couple’s Allowance
Married Couple’s Allowance rules allow the transfer of savings at the end of the tax year. Transferring unused allowances is of benefit to those who do not pay income tax or their bill is not considered high enough.
- Use ‘Form 575(T): Notice of transfer of surplus Income Tax allowances‘ for this purpose. HM Revenue and Customs can also mail a copy of form 575t to you.
You can also share or transfer the Married Couple’s Allowance before the tax year begins. That means either partner can:
- Choose to share at least the lowest amount of the married couple allowance rates.
- Transfer the total amount of married couples allowance from one partner to the other one.
Use ‘Form 18: Transferring the Married Couple’s Allowance‘ at the beginning of the tax year. HM Revenue and Customs can also mail a copy of form 18 to you.
Married Tax Allowance: Giving Money to Charity
Some taxpayers choose to give money to a charity in the United Kingdom using Gift Aid. In this case you should contact HM Revenue and Customs. Those who were born before the 6th of April 1938 may get extra income tax allowances.