Income Tax Act 2007 section 55B

Tax reduction entitlement

Section 55B sets out the conditions that must be met for an individual to receive a tax reduction through the marriage allowance (transferable tax allowance), how the reduction is calculated, and the effect on the transferring spouse's or civil partner's personal allowance.

• The receiving spouse or civil partner gets a tax reduction equal to the basic rate (or equivalent Scottish or Welsh basic rate) applied to the transferable amount, provided they are not a higher or additional rate taxpayer and an election is in force for the tax year
• The transferable amount was £1,060 for 2015–16; from 2016–17 onwards it is 10% of the standard personal allowance for the year, rounded up to the nearest £10 if necessary
• Neither spouse nor civil partner may claim the married couple's allowance for the same tax year, and the receiving individual must meet UK residence requirements
• The transferring spouse's or civil partner's personal allowance is reduced by the transferable amount, but if the receiving individual dies during the tax year, that reduction is reversed while the tax reduction itself is preserved