People can sign up to the Marriage Tax Allowance from today – a Conservative measure that recognises marriage in the tax system and provides a little extra financial security to families, the bedrock of our society.
The Prime Minister made a commitment to the British people that he would recognise marriage in the tax system – and today he is delivering on that commitment with the Marriage Tax Allowance.
This will be a tax cut for more than 4 million families up and down the country. It is something we can afford to do because of the growing strength of the British economy – as a result, it means families can get a little bit of extra support and more financial security.
This policy is also about far more than just pounds and pence. It’s about valuing commitment. Families are the bedrock of our society. It is families who raise our children, look after our old and keep our country going. This tax change is about saying as a society, we recognise that.
The Marriage Tax Allowance will allow a spouse or civil partner with income less than £10,600 to transfer £1,060 of their personal tax-free allowance to their higher-income spouse or partner. As long as the person receiving the transfer doesn’t pay tax at the higher or additional rate (for most people that’s an income of £42,385 or below), couples could see an annual tax reduction of up to £212. The allowance was announced in 2013 and full details were published as part of the 2014 Budget.