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Transferable tax allowance proposals

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Lawson-West Solicitors - Expert Author

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David Cameron has announced recently that the government will put forward proposals for a transferable tax allowance for married couples and civil partners “shortly”. This could be as soon as the Autumn.

Tory backbenchers have been putting the prime minister under pressure to honour a plan for tax breaks that was originally made in the 2010 election manifesto. However, Labour is against the idea and the Lib Dems were given a specific opt-out in the coalition agreement which means they do not have to support it.

Under the plans being considered, wives and husbands who do not work and pay no income tax would be able to transfer part of their annual tax-free allowance to their spouse if their partner earns less than the amount at which the higher rate of tax is payable. This is currently set at £41,451.

When it set out the plans in 2010, the Conservatives said they would make four million married couples and civil partners £150 a year better off. However, no detail is yet available about what exactly is being proposed in terms of a transferable allowance now, although it would only apply to basic rate taxpayers and may not be in force before the next election.

Mr Cameron said: “The point is that we are going to be putting in place the marriage tax proposal in law. We will be announcing plans for that in this Parliament, quite shortly in fact.”


About the Author

Lawson-West specialise in commercial, business and employment law. Our team of dedicated commercial solicitors can help with buying or selling a business, business law and disputes, landlord and tenant issues and commercial property. Our expert employment team can offer practical advice and guidance on all aspects of employment law including redundancy, compromise agreements and dismissal procedures. Visit www.lawson-west.co.uk for more information.

For information on civil partnerships and any aspect of family law please contact James Haworth at Lawson-West on 0116 212 1080 or Alistair Dobson on 01858 445 480.



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Article Published/Sorted/Amended on Scopulus 2013-07-12 09:15:25 in Legal Articles

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