According to reports, the foreign secretary has said that if she becomes prime minister she will launch a review to allow households to be treated as single tax entities.
This would allow individuals to transfer their personal allowance for tax-free earnings within their household. It would mean an earner could keep a higher proportion of their income before it is taxed while someone they live with focuses on caring duties. An individual can earn £12,570 before they start paying tax.
While no decisions have been made on what proportion of an earner’s personal allowance would be transferable, reports suggest the policy could save a couple up to £2,514 a year.
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