Tax Credits & Reliefs >> Marriage During Tax Year

Tags: tax refunds, marriage tax refunds, year end tax refunds

When you get married during a tax year you may be entitled to a tax refund. This will depend on the amount of income of each of the couple and when they get married during the tax year. Two calculations are required. The first involves calculating your tax as though you were two single people for the whole of the tax year. The second calculates your tax as though you were a married couple for the whole of the tax year. If the second calculation gives a lower tax liability then the difference between the combined tax liabilities as two single people as compared to the tax liability as a married couple is treated as a repayment. This repayment is then time apportioned over the tax year. If you got married half way during the tax year you would be entitled to 50% of this repayment. If you got married at the end of the tax year no refund would be due.
Repayments will only arise where one of the couple pays tax at the low rate ( 20%) and the other at the top rate (41%). If both parties pay tax at the same rate as single persons then no refund will be due.

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