Friday, January 15, 2010

Can a personal tax allowence be transfered between married couples?

ie. where the wife does not have an income can she transfer her allowence to be used by her husband.Can a personal tax allowence be transfered between married couples?
This cannot be done in UK. Personal allowances cannot be transferred.Can a personal tax allowence be transfered between married couples?
No, it cannot be transferred.





If you are self-employed and you add your wife to the payroll of your business for a deduction to be allowed for her income, she must be carrying out a role worthy of the rate of remuneration (salary) drawn. Otherwise, if the expense is un-commercial is a way to exploit your wife's PA if will be disallowed as an expense.





Alteratively, a partnership arrangement is preferrable, or a company with you as a director and drawing funds through the company using dividends.





If you are paying tax through the PAYE system, the only way to exploit your wife's PA is to use it for tax free savings such as ISA's etc.
If you are talking about the marriage allowance, why would she get it if she is not paying tax or has no income as you say? It is not worth transfering half the marriage allowance as the wife only gets 10% of it or thereabouts, therefore the husband has relinquished half his allowance but the wife doesn't receive half so as a couple you lose out.


Is the allowance about 4500 or so now. But as an example, the wife wouldn't get 2250 of it. It's a canny scam by the government.
If you are in the UK then there is no such thing any more as married couple allowance (unelss you were born before 1935). The personal tax rate in the UK is 5,035.





It may be possible (as a tax fiddle) to set you up as a non executive director of your husband's company and pay your housekeeping as a salary taking advantage of your tax allowance.
no
yes you can pay joint tax. Just ring the revenue and they'll help set it up
Not in UK.

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