Joint Tax Election

23rd September 2016

Transferrable MCA: Gift your partner £220.

The Government has in place a scheme (Transferable Married Couples Allowance) whereby certain couples can make an online claim to transfer unused tax allowance of up to £1,100 (10% of the annual Personal Allowance). This enables your husband, wife or civil partner to potentially pay up to £220 less tax (£1,100 x 20%) per year.

In order to clearly define the scheme within employee tax codes, the following suffixes were applied from April 2015:

  • The Transferor of the allowance will have a suffix ‘N’ on their tax code
  • The Recipient of the allowance will have a suffix ‘M’ on their tax code

If you think you were entitled to this allowance from the 2015/16 tax year you can backdate your claim. Below is the link to HMRC’s website for further information and how to apply for the allowance:



 
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