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Tax year end planning: Tax Allowances

17.02.2015

As previously announced, from 6 April 2015 a spouse or civil partner will be able to transfer up to £1,060 (10% of the personal allowance) to the other, providing both spouses or civil partners pay tax only at the basic rate.

The amount transferred will save up to 20% tax (£212).

 

As announced in the 2014 Budget, from 6 April 2015 the "savings rate" of tax on savings income (broadly, interest) will be extended. The first £5,000 of savings income above the personal allowance (of £10,600) will be tax-free.

 

Non-savings income (such as employment or pensions income) will continue to be taxed in priority, therefore this change would only benefit individuals whose non-savings income is below the personal allowance.