Bill bombshell over tax thresholds change hitting 100,000 couples – see if you’re affected | Personal Finance | Finance [Video]

More than 100,000 married couples face shock bills because of the Government’s decision to freeze tax thresholds.

The marriage allowance, which was introduced by former Conservative chancellor George Osborne, allowed a higher-earning spouse to transfer £1,260 (10 percent) of their personal allowance to their partner.

However a freeze on tax thresholds means that an estimated 127,680 are set to lose the benefit of this scheme.

Historically, the regime allowed a basic-rate taxpayer to receive a tax credit equivalent to £252 which could be transferred to their low paid partner.

But the ability to take advantage of this scheme is restricted to couples where one of the couple is a basic rate taxpayer and the other earns less than the personal allowance, currently £12,570.

A decision to freeze income tax thresholds until 2028-29, means 3 million workers will be pulled into the higher rate – 40 percent – tax bracket.

As a result, close to 128,000 couples …