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: