UK’s Marriage Tax Break a “Complete and Utter Flop”

February 16, 2016 Taxation in UK

Calculator and MoneyLONDON – The UK’s tax break for married couples has proven unsuccessful, with only 8 percent of eligible taxpayers bothering to register for the GBP per week concession.

Earlier this week the UK government’s tax break for married couples was described as a “complete and utter flop” by the opposition Labour Party, as new data reveals that uptake of the new tax break is a fraction of what was originally expected.

The tax break for married couples allows a transfer of GBP 1 060 worth of personal tax allowances between married couples and partners in a civil union, a move which could result in tax savings of up to GBP 212 per year for the couple.

Currently the personal tax allowance threshold is set at GBP 10 600, an amount under which a person does not need to pay any income tax.

The tax break, which came into force in April 2015, was originally expected to be used by millions of couples, however, so far it has only been taken up by 332 301 couples, approximately 8 percent of all those who are eligible.

Critics of the tax break are claiming that the low participation rate shows that the measure is of no benefit to many families, while also being too meagre and paying out a maximum of approximately GBP 4 per week.

Photo by Images_of_Money

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