Couples urge Chancellor to reform marriage tax allowance

The Chancellor is floating the possibly of a marriage tax allowance reform after a survey revealed that three times as many people thought it should increase the threshold in which a partner starts paying tax.

In its current state, the scheme allows people to transfer £1,100 of their personal tax allowance to their spouse or civil partner if they earn less than £11,000 – worth up to £220 a year per household.

But new figures show that as many as 3.1 million of the 4.2 million couples eligible to claim the allowance have failed to sign up.

Coming under pressure to make the allowance more accessible, it is believed that Philip Hammond will announce a policy change in the very last Spring Budget.

Derek Thomas, MP for St Ives, said: “When the marriage allowance was first proposed the implication was that it would be fully transferable and make a really significant difference. The allowance that we have, however, is failing to make an impact, being that 90 per cent of it cannot be transferred.

“The Budget in the spring is the perfect opportunity to increase the amount of money invested in the allowance so we can help the families that really need our support.”

Likewise, Fiona Bruce, MP for Congleton, said: “It is particularly concerning that at present more marriage tax relief is afforded couples in their 80s and 90s, whose children will have left home long ago, than on all other marriages including those caring for young children.

“Whilst we should of course care for our elderly, we should give a significant married tax break to young families who also need our help.”

The survey of more than 2,000 adults revealed that nearly 58 per cent of people support an increase in the marriage allowance.