Married Couples Allowance - For Those Born Before 6 April 1935

The Married Couple's Allowance reduces the amount of income tax a married couple or civil partners have to pay. The amount you can claim depends on your ages and, for couples who married before 5 December 2005, the husband's total income from all sources. For civil partners and couples who married on or after 5 December 2005, the amount depends on the total income of the spouse or civil partner with the higher income.

For the tax year 2007-2008 the allowance is available when either partner was born before the 6 April 1935.

The maximum allowances available for 2007-2008 are:

• £6,285 at 10% - if either you or your spouse or civil partner was born before 6 April 1935 but aged under 75 (so the allowance can be worth up to £628.50 off your tax bill)
• £6,365 at 10% - if either you or your spouse or civil partner is aged 75 or more (so it can be worth up to £636.50 off your tax bill).

What many couples may not realise is that if this allowance is not fully utilised by the entitled partner any surplus can be transferred to their spouse or civil partner, and used to reduce their tax bill. As you would expect there is a form that needs to be filled in.