Marriage allowance relating to interest on savings

I am taking 1,260 pounds of tax allowance from my wife as she is not paying tax on her pension. We now have savings which generates interest over the interest tax allowance. Will I now lose the marriage allowance? And how do I work out what her and my interest allowance is against are marriage allowance figures.

Hi Horseage,
The Marriage Allowance would not automatically be removed.
If tax is due on the amount HMRC will issue a tax calculation.
Please see:
Tax on savings interest

Thank you, HMRC admin 25. Much appreciated, I hope I understood the calculation. My allowance, I assume is still £1000, as I am a taxpayer at 20% regardless of my marriage tax allowance increase. My wife's interest tax allowance, I have assumed is calculated as follows:- Reduced tax allowance due to me taking marriage allowance, ie £12,570 - £1,260 = £11,310 minus her annual income say £9000 giving a allowable interest tax rate of £2,310. If her annual income was much lower, she would benefit from a interest tax allowance of up to £5000. If possible, would appreciate any further comments as to whether this is the right approach. Kind regards, Horseage.

Hi Horseage,

You are correct.
Her starting point would be the reduced personal allowance following the transfer.

Thank you.
 

Thank you, HMRC admin 20. Much appreciated. Kind regards, Horseage.