David Cameron recently announced that he will be introducing an additional tax break for married couples before the next electioin in 2015. Further details of which are expected to be announced this autumn.
The change could see married couples being allowed to transfer £750 of their tax-free personal allowance to their partner therefore reducing their partner’s tax bill by £150 a year for a basic-rate taxpayer.
The personal allowance is currently £9,440, so couples who split their assets can receive up to £18,880 of income a year free of tax.
However, it is unlikely to help higher earners, who were hit by the loss of child benefit at the start of the year. Households with someone earning more than £50,000 had child benefit reduced and those with income of more than £60,000 have lost it completely.
To see how this might affect you, see The Sunday Times on-line article http://www.thesundaytimes.co.uk/sto/business/money/Tax/article1283656.ece