Commentary on Sections Overview Overview Section 51: Transfer of unused relief
196.This section provides for the transfer to a spouse or civil partner of so much the relief as cannot be used in calculating the primary claimant’s liability to income tax. It is based on section 257BB(1), (2) and (3A) of ICTA.
197.In looking to see whether the claimant has unused relief, subsection (1) provides for a comparison to be made between that individual’s tax reduction (including any tax reduction transferred back from the spouse or civil partner) and the individual’s “comparable tax liability”. The meaning of this new term is given in section 53. The unused part of the total tax reduction under this Chapter is the amount eligible for transfer.
198.In order for this provision to apply the spouse or civil partner must be entitled to relief and the primary claimant must give notice that the transfer is to apply. These rules are contained in subsection (4).