Tax-free Personal Allowance


Q. I have a part time job and I earn about £9,000 a year. As my earnings are less than the tax-free personal allowance, can I transfer the unused amount to my husband?

A. A spouse or civil partner who is not liable for income tax or not liable above the basic rate for a tax year may transfer part of their personal allowance to their spouse or civil partner, provided that the recipient of the transfer is not liable for income tax above the basic rate.

The transferor's personal allowance will be reduced by the same amount. For 2020/21 the amount that can be transferred is £1,250 (remaining unchanged from 2019/20). The spouse or civil partner receiving the transferred allowance will be entitled to a reduced income tax liability of up to £250 for 2020/21.

Backdated claims are possible and could be worth in excess of £800.

Added By: Sharon Worger on 05th Jun 2020 - 11:09
Last Updated: 05th Jun 2020 - 11:20

Number of Views: 52
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