Government to Publish Plans for Marriage Tax Breaks Shortly

David Cameron has said the Government will bring forward proposals for a transferable tax allowance for married couples and civil partners “shortly.”

Mr Cameron has been under pressure to honour a pledge to introduce tax breaks made in his 2010 election manifesto.  Under plans being considered, wives and husbands who do not work and pay no income tax would be able to transfer part of their annual tax-free allowance to their spouse if their partner earns less than the higher rate of tax, which currently kicks in for people earning £41,451 or more.

In 2010, the Conservative Party said it would make four million married couples and civil partners £150 a year better off.

No detail is yet clear about the amount of transferable allowance proposed now, but it would only apply to basic rate taxpayers and may not be in force before the next election.  It is understood that the proposals could be unveiled to Parliament at the time of the Autumn Statement, around the end of November.

The 2010 Conservative Party election manifesto said recognising marriage and civil partnerships in the tax system would “send an important signal that we value couples and the commitment that people make when they get married.”