Sharing Tax Allowances

[sammmo]

My wife and I both retired early and for the last 3 yrs we have been living off our savings and our company pensions which we have taken early. We do not claim any benefits as we have money in the bank and we are not entitled to any. We don't pay any tax because our income is less than our tax allowance. Next month I will be old enough to start claiming my state pension and will be receiving more than my tax allowance so will have to pay tax. My question is. Can I have some of my wife's tax allowance so I don't pay so much tax.

[New Judge]

Yes.

Your wife can transfer £1,150 of her personal allowance to you and so reduce your tax bill by £230pa. Full details here:

https://www.gov.uk/marriage-allowance

[sammmo]

Thanks new judge.

[New Judge]

You're welcome. Hope you get it sorted OK. A relative of mine did this last year and it was sorted very quickly. Do it as soon as you start your State Pension then you should be eligible for the reduction in this tax year.