The BBC was reporting this weekend that the Chancellor will not be introducing a tax break for married couples in his Budget next month.
This pre-announcement followed speculation that it would be introduced to help appease Tory backbenchers who oppose plans to legalise gay marriage.
We could however see new rules introduced by 2015 which would allow married couples to transfer part of their personal allowance for income tax.
This could allow one spouse or civil partner to transfer up to £750 of their tax-free personal allowance to their partner, helping to reduce their income tax bill.
If introduced at this level, the measure would save a basic rate taxpayer around £150 a year, or £300 for a higher rate taxpayer.
The BBC quoted a senior government source as saying:
“It won’t be in the Budget but it will be in this parliament. This Budget obviously, with all that has happened in recent weeks and months, will be very much focused on growth in the economy”.
We have become used to many Budget measures being pre-briefed to the press ahead of Budget day itself.
The Budget this year will be held on 20th March and looks likely to focus on boosting economic growth, helping the UK to avoid a so-called ‘triple dip’ recession.
We expect to see infrastructure projects and tax breaks for capital investment. There might also be one or two surprises, designed to get voters onside as we get ever closer to the next election.
Photo credit: Flickr/alltogetherfool
