Married couples will get a tax break from 2015, while low and middle income earners under 65 could pay less from next April, Chancellor George Osborne said in today's Autumn Statement.

From April 2015, married couples and civil partners will be able to transfer £1,000 of their income tax personal allowance to their spouse, so long as neither pays higher rate (40%) or additional rate (45%) tax.

Choosing to transfer the allowance will mean one spouse pays tax on £1,000 less of their income. It'll benefit couples where one spouse doesn't use their full personal allowance – meaning together, they will pay less tax.

In future, this transferable amount will increase in proportion to the personal allowance – the income you can earn before you pay tax.

Personal allowances will increase in April 2014 by £560 from £9,440 to £10,000 (see our Tax Rates guide for more information).

From April 2015 the personal allowance will increase in line with the Consumer Prices Index (CPI) rate of inflation.

Above the personal allowance, you currently pay 20% income tax on earnings up to £41,450, 40% on earnings between £41,451 and £150,000, and 45% on earnings over £150,000.

From April 2014, you'll pay 20% on earnings up to £41,865, 40% between £41,866 and £150,000, and 45% on earnings over £150,000.

Martin Lewis
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