It will be possible from 29th November 2017 for a claim for the Marriage Allowance to be made in respect of a deceased spouse or civil partner and for that claim to be backdated for up to four years.
The Marriage Allowance allows individuals to transfer 10% of their personal allowance to their spouse or civil partner where the recipient is not a higher rate or additional rate taxpayer, where they are not in receipt of the married couple’s allowance and where the partner donating the MA is on a lower income than the partner receiving the allowance.
The partner giving the allowance should have an income of less than the personal allowance for the year of the transfer.
If the individual’s spouse or civil partner is deceased, the election can still be made provided the criteria are satisfied for the year(s) the transfer is beneficial.
Individuals are able to backdate claims for up to four years and with the allowance being increased to £1,185 from April 2018 the result is an additional £237 saving for that year. A total tax saving of around £900 will result if all four years meet the criteria and are claimed.