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Where Taxpayers and Advisers Meet

Eligibility to receive Marriage Allowance Transfer

senior citizen
Posts:8
Joined:Wed Dec 29, 2010 6:01 pm
Eligibility to receive Marriage Allowance Transfer

Postby senior citizen » Sat Apr 17, 2021 3:26 pm

My wife, a non taxpayer, has sufficient capacity to transfer the marriage allowance to me. HMRC online SA says my wife can only transfer if my income is maximum of £50,000. Although my income exceeds £50,000 the basic rate band is significantly increased because of Gift Aid donations & I am well within the 20% band.

Are HMRC correct in advising that I would not be eligible to receive the marriage transfer because my income exceeds £50,000 or can I receive it because I am a basic rate payer?

Any help appreciated. Thanks.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Eligibility to receive Marriage Allowance Transfer

Postby robbob » Sun Apr 18, 2021 12:43 pm

Are HMRC correct in advising that I would not be eligible to receive the marriage transfer because my income exceeds £50,000
Nope - hmrc are telling you porkies - they like to do that - they will say we "need to dumb it down" for the masses - the reality is they publish a bunch of crapola liable to confuse honest taxpayers just tyring to do the right thing.

They do sort of give the game away here without really making it easy for you. This first bit correctly advises that if you are only taxed as basic rate then you are eligible for transfer - so as long as this is the case you can go ahead with the transfer.
your partner pays Income Tax at the basic rate, which usually means their income is between £12,501 and £50,270 before they receive Marriage Allowance

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Eligibility to receive Marriage Allowance Transfer

Postby maths » Sun Apr 18, 2021 4:01 pm

hmrc are telling you porkies - they like to do that - they will say we "need to dumb it down" for the masses - the reality is they publish a bunch of crapola liable to confuse honest taxpayers just tyring to do the right thing.
Couldn't have put it better!

The recipient spouse has not to be liable to a rate other than the basic rate (savings basic rate etc). You satisfy the basic rate requirement.

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Eligibility to receive Marriage Allowance Transfer

Postby Jholm » Mon Apr 19, 2021 9:59 am

The same conclusion is true for instances where pension contributions, expense claims or other such make your taxable income below the higher-rate threshold.

senior citizen
Posts:8
Joined:Wed Dec 29, 2010 6:01 pm

Re: Eligibility to receive Marriage Allowance Transfer

Postby senior citizen » Fri Apr 23, 2021 4:05 pm

Thanks for your helpful replies.


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