From 6 April 2016, married couples and civil partners, who are either non-taxpayers or basic rate taxpayers, have been able to transfer 10% of their personal allowance from the lower-earning partner to the higher earner. In the 2018/19 tax year this equates to £1,185 of allowance, saving up to £237 in tax.
This will rise to £1,250 in the year ending 5 April 2020, which will save £250 in tax. A claim can be made for previous years and HMRC will calculate and repay any overpaid tax. Once a claim is made, the tax saving can be dealt with through your tax returns in future years.
