Party plots to axe £230 tax break for married couples

JEREMY Corbyn was accused of breaking his tax promises last night after it emerged that he intends to increase bills for 1.7million married couples.

The Labour leader pledged that only high earners would face increases in income tax if he becomes prime minister.

But buried in the small print of his manifesto is a plan to snatch married couple’s allowance, which takes up to £230 a year off a family’s income tax bill.

Theresa May last night declared that Mr Corbyn had ‘broken his promise on tax’. During a visit to North Wales, she said: ‘Jeremy Corbyn claimed that his manifesto showed that Labour would not put taxes up on ordinary families.

‘What we have seen today in the small print that is exactly what they would do.

‘The marriage allowance does enable families to save, I think the figure is something like £230 a year – that would be a tax increase if that marriage allowance goes.’

The tax break, which was launched by the Tories two years ago, allows couples to transfer some of their personal allowance – the amount they can earn before they have to pay income tax – to their partner.

A person can transfer £1,150 of their personal allowance to their husband, wife or civil partner if they earn more. This then reduces their tax bill by up to £230 a year.

The lower earner in the couple has to have an income of the personal tax threshold of £11,500 or less to benefit, and the higher earner’s income must only be taxed at the basic rate of between £11,500 and £45,000.

Some 4.2million people can claim the handout, with 1.7million having applied so far. Mr Corbyn has claimed that only high earners will face tax rises under Labour. The party’s website states: ‘A Labour government will guarantee no rises in income tax for those earning below £80,000 a year. Under Labour’s plans, 95 per cent of taxpayers will be guaranteed no increase in their income tax contributions.’

But the costings document accompanying it in the manifesto commits to ‘scrapping the married persons’ tax allowance’.

David Gauke, Chief Secretary to the Treasury, said: ‘Jeremy Corbyn has already broken his promise on tax.

‘Under his plans taxes would rise for millions of ordinary working families across the country even before his shadow chancellor has had to pay for the black hole at the heart of their uncosted spending plans.

‘Putting Jeremy Corbyn in Downing Street would mean the highest taxes this country has ever faced in peacetime, the Brexit negotiations at risk and our national security in the hands of Diane Abbott. The only way to keep taxes low and the economy strong is to vote for the Conservatives.’