I have finally retired and the only income I have are three personal pensions and the state pension.When I was working my tax code was raised when I started getting my state pension as that is how it is taxed.Now I am not working I am going to have to pay the amount I receive above my allowance from my pensions so one of them will have it's code raised which means I pay £60 extra each week from that pension.Have just applied for the marriage allowance but have been rejected because my wifes income is below the minimum amount required which is between £10.601 and £42.385.Her total income is under £10,000.I do not understand why you need to earn more to get this benefit.But not surprised and never understood why the state pension is taxed as it is only my money which I have paid out over the last 40 years or so I think it is a disgrace.£60 a month is a lot to me and many others I presume.Would love to hear what others think especially if they are in a similar situation.Apologies for this being so long winded
I don't think you understand the nature of the allowance.
Marriage Allowance lets you transfer £1,060 of your Personal Allowance to your wife. Adding £1,060 to your wife’s Personal Allowance means she would pay £212 less tax in the tax year BUT she doesn't pay any tax so there would be no benefit.
So could my wife transfer some of her unused allowance to me ie could she apply for marriage allowance as my income is above the requirement needed
It appears not.
This is a subject with a number of twists in the tail.
If your are unsure, then try to seek professional help, possibly from the CAB or Aged (old Age Concern) who usually have specialist giving this advice, usually for free with an appointment time to suit.
They may even help fill out forms if you are unsure.
Just been to my local citizens advice office and they gave me leaflet was hoping to attache or paste it on here have scanned it into my documents and copied it but seem unable to paste it.The section that interested me is this
You can transfer £1060 of your personal allowance to your spouse or civil partner if. Your annual income is £10600 or less Your partners income is between £10,601 and £42,385 You were born on or after 6th April 1935 If my wife applied then the answer to those three questions would be yes so would she eligible.I can ask her to apply they can only say no.It is not a big saving just £212 but better than a kick in the rear
Just seen this on HMRC WEBSITE
For Marriage Allowance to benefit you as a couple, the person making this transfer must be the lower earner and have an income of £10,600 or less (not including up to £5,000 of tax-free savings interest).
Are you the lower earner in your relationship? My wifes income is only just over £9000 and she only gets a couple about £200 to £300 a year interest on her ISAS.So I think she should be able to transfer some of her allowance to me
You are trying to do it the wrong way round.
Assuming your wife earns less than the personal tax allowance, she can transfer the unused portion up to the value of £1060 to you.
Her tax code will reduce as a result and should she see an increase in earnings at any time she will start paying tax sooner.
Hi oresome yes what I want is to use some of my wifes unused allowance by her transfering it to me.My wife is retired and does not pay any tax as she is well under the £10,600 limit.
State pension is always taxed - how else could we pay for things like the House of Lords!
Or, indeed, the Barnett formula!!! I think that there is a misconception that state OAP is not taxed. as, for those who only receive that as a retirement pension it is less than the tax free allowance.
It is , of course, part of one's retirement income , so those of us prudent or lucky enough to have other pensions pay tax on the sum of all of them, less the tax free allowance. I get a small Dutch OAP, a slightly reduced UK OAP, as I worked in the Netherlands for 10 years, so declare the Dutch one. My old company one pays all my income tax.
I am just slightly too young to get the old "marriage allowance" - I think for those born up to 1935, and the new one does not apply. Thanks, ponytail, for the info.
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