Transferable Personal Allowances

This Content Was Last Updated on March 10, 2024 by Jessica Garbett


It is possible, in some circumstances, to transfer £1,260 of your personal allowances to your spouse/civil partner.

It can only happen if the recipient of the transferred allowance is a Basic Rate taxpayer and involves both parties making a claim or election.

Claims must be made within 4 years after the end of the tax year of the claim and when a claim has been made it remains in force for later years until a disclaim is notified to HMRC.  However, if a claim is made after the relevant year, the claim is for that one year only (stand alone claim).

It will be most beneficial for our clients to review the possibility of a claim after the year end on a standalone basis, when we have all the figures to hand so can be confident of whether a claim will be beneficial.

For those clients with a spouse receiving a small salary below the National Insurance threshold, this is unlikely to be worth claiming unless there is other income against which Personal Allowances can be used.

If the potential donor is a Higher Rate taxpayer,  the best course of action is likely be to retain the full Personal Allowance to set against that higher income and take no action in relation to this issue.