Chapter 7 - Relief for Married Couples

Question 1

What is the amount of personal allowance that can be transferred?

Answer 1

10% of the personal allowance rounded to the nearest 10 - £1,260

Question 2

True or false

The gaining party will have their personal allowance increased by £1,260

Answer 2

False

The gaining party obtains a reduction in their income tax liability

Question 3

How do you work out the income tax liability reduction?

Answer 3

£1,260 x 20%

£252

Question 4

What are the conditions that need to be met to qualify for the MA?

Answer 4

• the individuals must be married or in a registered civil partnership for all or part of the tax year
• the individuals must be married in the tax year to which the election applies & the time the election is made
• Neither individual is above a basic rate taxpayer
• the election must be made within four years of the end of the tax year to which it applies