Higher rate tax, Marriage Allowance and Gift Aid

Hi, I am a pensioner, I have no earned income. Currently my husband transfers part of his personal allowance to me as Marriage Allowance. In this current tax year I may become liable for higher rate tax, however my charitable donations in this current tax year will be high enough that when set against income they will push me below the threshold for higher rate tax. Does this mean I can continue to benefit from Marriage Allowance for this tax year?

Hi P M,
If the charitable donations stop you going into the higher rate then will still be able to receive the Marriage Allowance transfer.
If you do go into the higher rate the Marriage Allowance will no longer be due. 
Thank you, 
 

Good Afternoon I have exactly the same situation for Tax Years 2021-22 and 2022-23 in that my Gift Aid has increased my Basic Rate Limit so I do not pay any Higher Rate Tax at all but HMRC have cancelled my Marriage Transfer Allowance for 2022-23 contrary to the answer provided here which I accept is what makes common sense with the result I have an additional tax bill for £252 to be paid before January 24. Please can you provide me with a reference to any HMRC Internal Guidance Manual or similar that I can quote to HMRC as they have been unable to justify their demand for payment or provide any calculations to support their arguements over three very long telephone conversations in the last month. I appreciate HMRC Staff must be under considerable pressure to deal with many queries but I have 23 years experience with Income Tax Returns via paper forms and online self assessment and this is the first time the Self Assessment Tax Calculations and Statements do not agree with one another. Many thanks

Hi CJ C

The marriage allowance is only applicalbe if your income is below £50270 so whilst the gift aid may extend the basic rate band for you, this doesn't change the level of income received.
Please refer to Marriage Allowance

Thank you

Hi, I am concerned that we now have 2 replies from HMRC admins which contradict each other. On the HMRC website re Marriage Allowance it states you will be eligible if "your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance". That "usually" suggests there are circumstances where your income may be over £50,270 but you still pay Basic Rate tax, and are thus eligible to benefit from Marriage Allowance. So this would seem to say that the first reply from HMRC25 was correct - if you pay tax at the basic rate you are eligible to benefit from Marriage Allowance. Please can someone get some supervisory confirmation of this? Thank you.

HMRC Admin 5 The printed HMRC Self Assessment: Tax Calculation for 2022-23 received by post does not support the answer you have given, which if correct, would suggest that the calculations for this tax year are wrong and perhaps have been other tax years up to 23 years ago! My Self Assessment Online Account says that I do not owe any tax for 2022-23 but I am still receiving demands for payment of additional amounts which keep varying. May I suggest there is a fundamental problem with the system as both can't be correct. Your answer also contradicts the one given by HMRC Admin 25. Perhaps you could confer with them and provide further explanation which would be appreciated.

I have a similar situation with pension contributions. My income was above £50,270 but after deducting pension contributions fell below this threshold. I contacted HMRC helpline and was advised that my spouse should re-submit the transfer claim, we did this but had no effect. I have spoken to another HMRC rep today on the online chat and they advised that relief for the pension contributions can only be claimed by a higher rate taxpayer and, therefore, I am not a basic rate taxpayer and not entitled to the marriage allowance. The only online guidance is 'paid tax at basic rate' which is the case!

The answer to the questions raised in this topic are surely to be found in the UK Legislation enacted by Parliament which in this case have the origins in the Finance Act 2014 as amended and as such I would suggest are non-negotiable as far as interpretation is concerned. The Finance Act 2014 can be found at legislation.gov.uk at https://www.legislation.gov.uk/ and the following parts appear to be relevant… The Finance Act 2014 PART 1 Income tax, corporation tax and capital gains tax CHAPTER 2 Income tax: general Exemptions and reliefs 11.Tax relief for married couples and civil partners Furthermore, supporting evidence can be found in the HMRC MATCF Marriage Allowance Transfer Application Form in that it only requires that the Partner of the Applicant only pays Income Tax at the Basic Rate. The HMRC Tax Information and Impact Note (TIIN) Transferable tax allowances for married couples and civil partners describes the changes to the Income Tax Act 2007 to implement this allowance as described in the Finance Act 2014 and only includes the requirement for Basic Rate Tax to be paid. I hope that this might help resolve the issues raised here to everyones satisfaction. HMRC Admins - Many thanks for taking the time to provide assistance.

Hi CJ C

please refer to Marriage Allowance

Thank you

Hi P M

Please refer to Marriage Allowance

Thank you

Hi, thanks HMRCAdmin5 for taking the time to reply. I appreciate this is an ongoing debate, but the page you link to says specifically; "You can benefit from Marriage Allowance if all the following apply: you’re married or in a civil partnership you do not pay Income Tax or your income is below your Personal Allowance (usually £12,570) your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance" My partner and I meet all these criteria. The page says it depends on rate of tax payable, it does NOT say it depends on actual income received. I would be very grateful if we could get an answer from a senior administrator to clarify the two opposing answers we have received. Thank you.

Hi MPW
We would need to access your record to check if you are eligible for the marriage allowance transfer.  
You can contact HMRC at Income Tax: general enquiries 
Thank you.

Hi P M,
Apologies, but to give you the correct advice, we would need to take a look at your individual record.
You can contact HMRC here:
Income Tax: general enquiries
Thank you. 

HMRC – Thanks This morning I received a corrected SA Statement and Tax Calculation for 2022-23 in response to a letter I wrote in December 2023 resolving the issues I had been having with my Self Assessment Tax Return since September 2023 which I had not been able to resolve during several telephone calls. From my experience I would offer the following advice: - Research the topic you wish to discuss or get help with using the HMRC, GOV.UK and other websites taking care to use only reliable and authentic information taking notes in preparation for telephoning or writing to HMRC. Set out the questions or points you wish to raise in a logical order on paper so that you can explain these to the people at HMRC with whom you make contact giving them the best opportunity to help you. The period between September and January in each tax year is likely to be a very busy period for HMRC so please be very patient and do not expect an immediate response. HMRC Admins - You are welcome to add anything else that may make this an easier process.

Update Marriage Transfer Allowance - Unfortunately HMRC have now ignored the SA Statement and Tax Calculation for 2022-23 (and my letter) mentioned above and reverted to their opinion based on information that had been altered by someone at HMRC without my knowledge or consent resulting in an incorrect calculation.