ACCA Applied Skills · Taxation (UK) · The use of exemptions and reliefs in deferring and minimising income tax liabilities
Lena, a UK resident, is married to Omar. Omar has no income tax liability to use his allowance fully, and neither is a higher or additional rate taxpayer. Under the tax tables, what is the maximum amount of personal allowance Omar can transfer to Lena under the marriage allowance?
The maximum transferable amount is £1,260. The tax tables set this fixed figure for the marriage allowance, so Omar can transfer £1,260 of his personal allowance to Lena, not half or all of his allowance.
- A£12,570
- B£6,285
- C£1,260Correct
- D£5,000
Explanation
The tables give a transferable amount of £1,260. This is a fixed figure and not half of the personal allowance. £6,285 wrongly halves the allowance, and £12,570 would transfer the whole allowance.
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