Session 2013 - 14
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Other Bills before Parliament




House of Commons


Notices of Amendments


given on


Thursday 20 June 2013


Consideration of Bill


Finance Bill, As Amended


Transfer of personal allowances between spouses


Tim Loughton




To move the following Clause:—


‘After section 37 of the Income Tax Act 2007, insert—



Transfer of personal allowances between spouses



This section applies to an individual who is entitled to a personal


allowance under sections 35 to 37 for a tax year if—



the individual is a person whose spouse who is living with the


individual for the whole or any part of the tax year,



the individual is, for the whole or any part of the tax year, usually


resident with at least one child who is under the age of 5 years at


the end of the tax year, or such other age as is specified by order;





the spouse meets the requirements of section 56 (residence, etc).






the allowance exceeds the individual’s income;



the individual makes an election; and



the individual’s spouse makes a claim;



the individual’s spouse is entitled to an allowance for the tax year equal


to the amount of the transferable allowance subject to a maximum


amount, if any, specified by order.



The individual’s transferable allowance is found by—



taking any personal allowance to which the individual is entitled


for the tax year, and



subtracting the amount of the individual’s income.



For the purposes of this section “spouse” includes civil partners.


Notices of Amendments: 20 June 2013                     



Finance Bill, continued



For the purposes of this section an “order” means order made by statutory


instrument a draft of which has been laid before and approved by


resolution of the House of Commons.



This section shall have effect for the tax year 2014-15 and subsequent





Election for transfer of allowance under section 37A



An election under section 37A—



must be made not more than 4 years after the end of the tax year


to which it relates;



cannot be withdrawn; and



cannot be made before 6 April 2015.



If an individual makes an election for a tax year under section 37A the


individual is treated as also giving notice under section 51(4) that section


51(1) (tax reductions for married couples: transfer of unused relief) is to


apply for the tax year.”.’.



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Revised 21 June 2013