Part 3Personal reliefs
F5CHAPTER 3ATransferable tax allowance for married couples and civil partners
Tax reduction
55BTax reduction: entitlement
1
An individual is entitled to a tax reduction for a tax year of the appropriate percentage of the transferable amount if the conditions in subsection (2) are met.
2
The conditions are that—
F16a
the individual is the gaining party (see section 55C(1)(a)) in the case of an election under section 55C which is in force for the tax year,
b
the individual is not, for the tax year, liable to tax at a rate other than the basic rate, F19 the default basic rate, the savings basic rate,F9the dividend nil rate,F7the Scottish basic rate,F3a Scottish rate below the Scottish basic rate, the Scottish intermediate rate,F14the Welsh basic rate, the dividend ordinary rate F10, the savings nil rate or the starting rate for savings,
F2ba
if for the tax year the individual is liable to tax at the dividend nil rate, the individual would for that year neither be liable to tax at the dividend upper rate, nor be liable to tax at the dividend additional rate, if section 13A (dividend nil rate) were omitted,
c
the individual meets the requirements of section 56 (residence) for the tax year, and
d
neither the individual nor the F8relinquishing spouse or civil partner makes a claim for the tax year under section 45 (married couple's allowance: marriages before 5 December 2005) or section 46 (married couple's allowance: marriages and civil partnerships on or after 5 December 2005).
3
4
“The transferable amount”—
a
for the tax year 2015-16, is F17£1,060, and
b
for the tax year 2016-17 and subsequent tax years, is 10% of the amount of personal allowance specified in section 35(1) for the tax year to which the reduction relates.
5
If the transferable amount calculated in accordance with subsection (4)(b) would otherwise not be a multiple of £10, it is to be rounded up to the nearest amount which is a multiple of £10.
F125A
In this section “the relinquishing spouse or civil partner”, in relation to an election under section 55C, means the individual mentioned in section 55C(1)(a) by whom, or by whose personal representatives, the election is made.
6
7
If an individual who is entitled to a tax reduction for a tax year under subsection (1) dies during that tax year, subsection (6) is to be ignored (but this does not affect the individual's entitlement to the tax reduction).
Pt. 3 Ch. 3A inserted (with effect in accordance with s. 11(12) of the amending Act) by Finance Act 2014 (c. 26), s. 11(2)