MORE than 3million couples earning less than £50,000 could have an up to £250 a year tax break snatched away from them if Jeremy Corbyn's Labour party get into power.
Hidden in the small print of the Labour leader's manifesto is a hint that the party will scrap the so-called "marriage tax allowance" in a bid to save £535million.
But this will see the millions currently benefiting from the scheme lose out – despite Mr Corbyn's promise not to raise taxes for those earning more than £80,000.
The perk currently applies to married couples and those in a civil partnership where one is a non-taxpayer and the other is a basic-rate tax payer, meaning they earn £50,000 or less.
Under the system, couples can transfer 10 per cent of their personal allowance – the amount you can earn tax-free each tax year – between them in order to reduce their annual tax bill.
As the personal allowance is now £12,500, it means the non-tax paying spouse can transfer £1,250 to their spouse who can add this to their tax-free income.
How do I apply for the marriage tax allowance?
IF you're eligible for the marriage tax allowance, here's what you need to know.
To apply, you need to fill out the form on the Gov.uk website.
The person with the lowest income should be the one to apply.
You’ll need both of your national insurance numbers and a form of ID, such as a passport.
If your partner has died since April 5 2015 you can still claim on their behalf by phoning the income tax helpline on 0300 200 3300.
This means a tax saving of £250.
Back in February, the government said the perk was available to 4.2million couples across the UK, but only 3.5million couples had applied for it.
It was first introduced back in 2015 and has risen each tax year since then.
Personal finance expert Laura Suter, from financial firm AJ Bell, says the move by Mr Corbyn seems to be more of a personal decision than one that will boost Treasury coffers.
She said: "Not many people claim marriage tax allowance, or even know they can claim marriage tax allowance, so scrapping it won't raise that much cash.
"What it seems to signal more is Labour's view that it believes it's unfair to offer a tax break because of someone's personal decision to get married or enter into a civil partnership.
"It may have been better for Labour to have instead extended the break to all co-habiting couples regardless of whether or not they're married, although perhaps this would be too difficult to prove in practice."
Who can claim the marriage tax allowance?
TO be able to claim your tax break you need to tick all of these boxes:
- You’re married or in a civil partnership
- Your income is £12,500 or less. This includes people who don’t work.
- Your partner’s income is between £12,500 and £50,000 (or £43,430 if you’re in Scotland)
You can’t claim it if:
- You and your partner live together but aren’t married
- You were born before April 6, 1935.
For more information visit GOV.UK
Nimesh Shah, a partner at accountancy firm Blik Rothenberg, added: "Take-up of the marriage tax allowance has been quite poor as the scheme is complex and hasn't been widely publicised.
"The savings made from using it are also relatively small, so I'm not sure why Labour has made such a strong statement – maybe it's making a point of scrapping a policy first introduced by David Cameron and the Tories."
Paul Johnson, director think tank the Institute for Fiscal Studies (IFS) added that Mr Corybn's claims to only tax companies and high earners doesn't stack up.
He told BBC Politics Live: "In terms of the taxaxtion, they're talking about getting this money just from companies and people on high earnings, and there's got to be a lot of doubt, serious doubt, about whether that is genuinely credible."
The Sun has asked the Labour party to comment.
In his manifesto My Corbyn said: "I am not prepared to put up with communities blighted by lack of investment, endless cuts to vital services and millions struggling to make ends meet, while tax cuts are handed to the richest."
Check out our live blog for the latest political news as Mr Corbyn launches Labour’s manifesto.
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