Marriage Allowance Transfer - complex

[colin66]

My wife just had a call relating to a MTA claim, ( request made but £1260 extra akkiwance not applied to my calc)

Wife £7000 income, £7000 interest
ME, £98000 income , but basic rate limit increased by 48300. to £86000 due to SIPP contribution
Hence with £12570 PA , the rest was taxed at 20%

HMRC caller said
Firstly, MTA can’t happen as wife income is over £12570,
Then, well it will cause her a tax liability
Then, I can receive the MTA as a high earner .

Trust all three are incorrect ?

[colin66]

Edit

My wife just had a call relating to a MTA claim, ( request made but £1260 extra akkiwance not applied to my calc)

Wife £7000 income, £7000 interest
ME, £98000 income , but basic rate limit increased by 48300. to £86000 due to SIPP contribution
Hence with £12570 PA , the rest was taxed at 20%

HMRC caller said
Firstly, MTA can’t happen as wife income is over £12570,
Then, well it will cause her a tax liability
Then, I can’t receive the MTA as a high earner .

Trust all three are incorrect ?

[D&C]

Based on the information you have provided your wife is eligible for Marriage Allowance.

By applying she would have £2,690 of interest income which is above her (reduced) Personal Allowance and be taxed. But that will be at the savings starter rate of 0% so no actual liability.

But irrespective of that she isn't a higher rate payer so is eligible and can make herself pay tax if she wishes. But based on your figures there would be no tax to pay.

Have you already notified HMRC of your SIPP contribution?

Have you definitely included all your taxable income in the £98,000 figure?

Did you receive any dividend income in the tax year in question?

What is the tax year in question?

Where are you resident for tax purposes?

Being a "higher earner" is not a factor in whether someone is eligible for Marriage Allowance. It is the tax rates you are liable at which is key. One person with total taxable income of £50,271 might be ineligible. Whilst another with double that taxable income could be eligible.

[colin66]

Thanks that’s what I thought, hopefully now I have raised it , it will be revised