The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 86 years old on 5 April 2021 to qualify for an allowance in the 2020/21 tax year.
There is a distinction in the legislation between couples that married before 5 December 2005 and those that married or entered a civil partnership from this date.
Unlike the personal allowance, the MCA is a ‘tax reducer’, not a deduction from net income. Also, MCA can be transferred between spouses / civil partners, although the amount of the allowance is always calculated by reference to the primary claimant.
The commentary in this guidance note applies equally to those in civil partnership as it does to those who are married. For simplicity, the text refers to ‘spouse’, ‘married couples’ and ‘marriage’, but this should be read as ‘spouse or civil partner’, etc.
This guidance note does not discuss the ‘transferable tax allowance’ (also known as the ‘marriage allowance’) which came into effect from 6 April 2015. This is because the transfer relates to the personal allowance and if a claim for the MCA is made for the tax year then the transferable tax allowance is not available. For more information, see the Transferable tax allowance guidance note.
ITA 2007, s 55B(2)(d)
Married couple’s allowance
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.