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Posted Wed, 16 Aug 2023 11:51:09 GMT by Paul Weller
I have two questions relating to the circumstance where a husband and wife would, if simply living in the UK and both being taxed in the UK be eligible for the Marriage Allowance transfer between spouses, but in a circumstance where, as things currently stand, both spouses are mainly living outside of the UK but are for the moment still being required to complete UK self-assessment returns (as well as completing tax returns in their country of primary residence): 1.) In the circumstances above, is it possible for the lower income person of the spouse couple above to claim such? And, if so: a.) If the above is in principle possible, and the spouse in the couple who wants to transfer their Marriage Allowance to the higher earning partner would the spouses need to include into the online tool that asks for information on their income, details of their worldwide gross income? Or, if they have only some income that is taxed in the UK and other income (for example, under a double taxation agreement, a social security pension from the other country, or a Royalties from the UK that are subject to taxation in the other country rather than in the UK) only their gross income that is currently subject to taxation in the UK? b.) Again, if the above is in principle possible, the online tool asks a question about in which country one is living, and offers only England, Scotland, Wales and Northern Ireland. But if a claim is in principle possible, and one's main residence is in another country than the UK, should one give the UK nation that is where one continues to be required to complete UK self-assessment? Hopefully these queries are clear and can be answered by an HMRC colleague, as although I have looked, I can't seem to find anything to clarify them on the HMRC website, and I can imagine the question would also be one where the answer would be of broad interest and relevance to those living primarily overseas but still being required to complete UK self-assessments and to pay tax in the UK on a proportion of their worldwide income. 2.) If it is possible, the online tool for claiming such asks
Posted Fri, 18 Aug 2023 14:16:49 GMT by HMRC Admin 25
Hi Paul Weller,
Marriage Allowance can still be claimed by non residents.
If you are entitled to the Personal Allowance you can make a claim:
Marriage Allowance
You would only be declaring income that is taxable in the UK.
Regarding the online tool, you should be able to provide feedback at the bottom of the page and say that there is no option to indicate the individual is non resident.
Thank you. 
Posted Fri, 18 Aug 2023 16:56:55 GMT by Paul Weller
Thank you for this very helpful clarification on the questions that I asked, which I can imagine will be helpful for many living outside of the UK if they might not previously have been aware of the possibility of still claiming the marriage allowance. Just for full clarity, re the issue that in using the online tool to apply for such that one is offered only the options of whether one lives in England, Wales, Scotland or Northern Ireland and your advice in relation to that to "provide feedback at the bottom of the page", can I cross-check if you mean "at the bottom of the page" ONCE THE TOOL HAS BEEN USED AND ONE OF THE FOUR NATIONS OFFERED HAS BEEN CHOSEN, that there is THEN a feedback option in which one can explain one's situation relative to what one has chosen?
Posted Wed, 23 Aug 2023 16:04:13 GMT by HMRC Admin 25
Hi Paul Weller,
It should be shown as feedback or 'report a problem with this page'
Thank you. 
Posted Wed, 11 Oct 2023 11:20:51 GMT by Kohlbeck
Hi, Also had a similar query but found the below on the guidance notes for the SA100 (basic self assessment tax return) page 15 that states: “If you do not live in the UK but are a citizen of a European Economic Area (EEA) country, you can still make a transfer but your worldwide income (in UK pounds) must be less than your personal allowance for you to be eligible.” This makes me believe that the person you are transferring the allowance from has to have a world wide income below the personal allowance (if living in the EEA) The reason I’m asking for clarity is both me and my wife live in Jersey. We’re both non-resident in the U.K. both have income from U.K. property but I also have U.K. employment income. If it is just UK income then we could transfer her allowance. However she has income from employment in Jersey which if added to the property income would be above the personal allowance so if it’s world wide income as I understand from the paragraph above we wouldn’t be entitled to the allowance transfer.
Posted Thu, 19 Oct 2023 18:13:57 GMT by Paul Weller
Mmmmm....yes, this really does need clarification, since the reply by HMRC Admin25 above states: " you would only be declaring income that is taxable in the UK" which seems to suggest that, even if the lower income partner had, in total, more income than the UK tax threshold, a claim would not be precluded if that income was not taxable in the UK, but only was only subject to tax elsewhere - whereas the quoted section of the SA100 above seems to contradict that when stating "your worldwide income (in UK pounds) must be less than your personal allowance" WITHOUT qualifying that by reference to UK taxable income?
Posted Mon, 23 Oct 2023 14:51:40 GMT by HMRC Admin 32
Hi Kohlbeck,

You would need to contact HMRC to review.

Contact HMRC

Thank you.
Posted Wed, 25 Oct 2023 16:01:53 GMT by HMRC Admin 25
Hi Paul Weller,
The section you are referring to is for the 10% extra from your spouse and whilst you need to declare your worldwide income, if this has already been excluded by way of a double taxation claim, then you would not be including this income.
Thank you. 

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