Income Tax: Marriage Allowance claims on behalf of deceased partners
Published 22 November 2017
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Who is likely to be affected
Income tax payers, employers and pension providers.
General description of the measure
This measure allows Marriage Allowance (MA) claims on behalf of deceased spouses and civil partners, and the backdating of these claims by up to four years.
Policy objective
This change makes MA more widely available.
Background to the measure
The government introduced MA in 2015 to recognise marriage through the tax system.
MA 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. Individuals are able to backdate claims for up to four years.
Currently, the legislation does not allow transfers of personal allowance on behalf of deceased spouses and civil partners, or from a surviving partner to a deceased partner.
Detailed proposal
Operative date
This measure will come into force on 29 November 2017.
Current law
Sections 55A to 55E of the Income Tax Act (2007) provide for the transfer of a portion of income tax personal allowances for married couples and civil partners.
Section 55C(1)(a) provides that an individual may make an MA election only if they are married to, or in a civil partnership with, the same person both ‘for the whole or part of the tax year concerned’ and ‘when the election is made’.
Proposed revisions
Legislation will be introduced in Finance Bill 2017-18 to amend Sections 55B to 55D of the Income Tax Act 2007. This will enable an individual whose spouse or civil partner is deceased to make an application for MA, and for the claim to be backdated for up to four years where the entitlement conditions are met.
Summary of impacts
Exchequer impact (£m)
| 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 |
|---|---|---|---|---|---|
| negligible | negligible | negligible | negligible | negligible | negligible |
This measure is expected to have a negligible impact on the Exchequer.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
This measure will benefit individuals who are now able to make an application for MA in respect of a deceased spouse or civil partner. This could reduce their tax by up to £230 per year.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
This measure will impact on married couples, and those who are considering marriage.
It is not anticipated that there will be impacts on groups sharing other protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on employers and pension provider’s administrative burdens. One-off costs include familiarisation with the new rules. On-going costs include changing the tax codes of individuals who are now eligible to claim MA. There is no impact on civil society organisations.
Operational impact (£m) (HM Revenue and Customs or other)
There will be no significant operational impact.
Other impacts
Other impacts have been considered and none has been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, please contact Income Tax Structure and Earnings by email: incometax.structure@hmrc.gsi.gov.uk.