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Tax Allowances

Question: tax allowances?

My husband retires soon but will still have to pay tax and someone mentioned to me that because I am also retired but do not pay tax we can transfer tax allowance between each other to enable us to pay less tax. Does anyone know anything about this ?
many thanks

Answer: You cannot transfer your unused personal allowance to your spouse; that applies to both the basic and the age related personal allowance, the latter of which is payable to those aged 65 and over. If you or your husband were born before 6th April 1935 you are entitled to the Married Couple’s Allowance (MCA); for those married before 5th December 2005 the husband claims, for those married or entering a civil partnership after that date the person with the higher income can claim. Any unused MCA can be transferred to the other spouse or civil partner, provided they pay tax. The MCA only applies if you pay tax. The following link to the HM Revenue and Customs website provides more detailed information on the MCA: http://www.hmrc.gov.uk/pensioners/reducing-married.htm

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.

Basic Explanation of W-4 Tax Form : Personal Allowance Worksheet A thru D: W-4 Tax Form