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MPs endorse transferable allowances!

This afternoon, during passage of the Finance Bill, the House of Commons voted to approve the introduction of transferable allowances for married west ministercouples.  This is fantastic news!

The specific measure (Clause 11) to introduce transferable allowances was won by 279 votes to 214.  A vote requiring a review of the proposal after 6 months was defeated by 276 votes to 217.

As CARE supporters know, we have campaigned for the reintroduction of recognition of marriage in the income tax system since it was removed in 2000.  After an absence of 15 years that recognition will return in April 2015.

Clause 11 makes provision for a non-earning spouse to transfer up to 10% of their tax allowance to their earning spouse.  CARE regards this as a very important first step.

Our long term goal is to continue to campaign for a fully transferable allowance – something to which a number of parliamentarians pledged themselves today – so that the non-earning spouse can transfer all of their tax allowance to their earning spouse.

CARE research has, over many years, demonstrated how one-earner married couple families on average wage have been particularly discriminated against.  Our recent International Comparisons 2012 report, published last month, showed that in 2012 the tax burden on a one earner married couple with two children on average wage was 45% above the OECD average.

We would particularly like to honour the work undertaken in this area by CARE's independent tax consultants Don Draper and Leonard Beighton over many years and more recently also by Alistair Pearson and David Binder.

Thank you for your prayers and support – we give thanks to God for His faithfulness in today's vote.