CARE has long campaigned for the recognition of marriage in the tax system through the introduction of transferable allowances, allowing a stay at home spouse to transfer their tax allowance to a working spouse.

Our tax system always used to recognise marriage in the tax system through the Married Man’s Allowance and then through the Married Couples Allowance. The value of the latter was eroded during the 1990s and then finally removed in the financial year 1999-2000. Since 2000 our tax system has been very unusual in failing to recognise marriage.

After 14 long years with no recognition of marriage in the income tax system, the 2014 Finance Bill proposed a partially transferable allowance for married couples allowing a stay at home spouse to transfer 10% of their tax allowance to a working spouse. The Finance Bill concluded its passage through Parliament in July and received Royal Assent on 17 July. Transferable allowances for married couples have consequently now become law and will take effect from 1 April 2015!

A CARE spokesperson said,

"This is an historic moment. Britain has taken a step to come back in from the cold and to realign ourselves with comparable OECD economies which all recognise marriage in their tax systems. This is a matter of social justice. Our failure to recognise marriage has meant that married couples get a raw deal in this country. In the latest year for which figures are available, 2012, one-earner married couples with two children on average wage paid a tax burden that was 45% higher than the OECD average."

"We are of course disappointed that the amount to be transferred is so small and also that the accompanying taper rate that the Conservative Party promised – to ensure that the transferable allowance is not lost suddenly as one moves from the basic to higher rate of tax – has not been delivered. However, the 2014 Finance Act moves us from a place where marriage was not recognised in the tax system to a place where it is recognised and provides an important foundation on which to build, making the case for a fully transferable allowance."

We very are grateful to all CARE supporters who have stood with us during the campaign to get marriage recognised once more in the income tax system.

We are thankful for the Prime Minister’s commitment to recognising marriage in the tax system and particularly for speeches he gave in this regard in the run up to the 2010 General Election. We are also grateful to key parliamentarians who have faithfully campaigned on this issue including Fiona Bruce MP, Tim Loughton MP, Stewart Jackson MP, David Burrowes MP, Andrew Selous MP, Jim Shannon MP, Lord Lawson of Blaby, the Lord Bishop of Chester, Lord Mackay of Clashfern and Lord Browne of Belmont.

We pay particular tribute to our Fiscal Policy Team and especially to independent Fiscal Policy Consultants Don Draper and Leonard Beighton who have worked tirelesslyon this issue for many years.