Consider Sharing Personal Allowance Before Tax Year End
Published / Last Updated on 21/02/2020
The personal allowance is currently £12,500. This is the amount of earned or pension income you can receive before paying income tax.
If you are married or in a civil partnership you can share 10% of your personal allowance (10% X £12,500) = £1,250 with your partner if your income is low.
For example, your income is £10,000 pa and your partner’s is £20,000. You can share £1,250 of your £2,500 unused personal allowance with your partner to get an immediate tax refund for this year and beyond.
For a 20% basic rate tax payer, this could mean a tax refund of £250.
For a 40% higher rate tax payer, this could mean a tax refund of £500.
For a 45% additional rate tax payer, this could mean a tax refund of £562.50.
But with other ‘cross over thresholds’ e.g. pensions taper relief or reduced/nil personal allowance when earning over £100,000 and £125,000 this could mean a real tax refund of up even more c £900.
