Marriage allowance / pension contributions

[colin66]

Hi, can I claim the £1260 transfer if

Wife earnings £7k , interest £6k


My income £99,000 but £60,000 paid into sipp, so nothing falling into Higher band


Thanks

[D&C]

Nope, you can never "claim" Marriage Allowance.

You don't say which tax year this relates to but assuming it isn't an out of date one you could ask your wife to apply for Marriage Allowance.

She would lose £1,260 of her Personal Allowance and make herself liable on more of her interest but it would be at a 0% tax rate so wouldn't disadvantage her.

You would retain the standard Personal Allowance but get £252 deducted from your tax liability.

The above assumes HMRC are already aware of your SIPP contributions and won't see you as a higher rate payer. If not you need to sort that first to avoid wasting your wife's (and HMRC's) time.

[colin66]

Thanks..

Sorry for clumsy terminology, but yes you knew what I meant.
It’s for 23/24. .. just about to submit both returns, ( HMRC know I make SIPP contributions but that year was higher due to increased AA) so is it better for my wife to apply after submitted rather than on the return now ?

[Taxstat]

I'd suggest applying now rather than waiting. HMRC can adjust retrospectively if needed, and it's easier to do it upfront with your returns. Just make sure they've properly registered your SIPP contributions to confirm you're not technically a higher rate payer. Quick and clean is best.