text_body: --- DIVISION TITLE ---
  
  Finance Bill - New Clause 5 - Transfer of personal allowances between spouses
  
  --- MOTION EFFECT ---
  
  @ MP voted aye to allow people to transfer their unused personal tax allowance to their spouse(s).  
  @ MP voted no against allowing people to transfer their unused personal tax allowance to their spouse(s).  
  
  The majority of MPs voted against a proposal to allow people to transfer their unused personal income tax allowance to their spouse(s).  
  
  The first portion of someone's income is not subject to income tax, the amount of income which is tax free is known as the personal income tax allowance.
  
  Had the proposal been accepted it would have been a move away from taxing people as individuals.
  
  The proposal would have benefited those who would be in a position to give an unused personal tax allowance to a spouse who would be able to reduce the income tax they have to pay by using an additional tax free allowance. 
  
  Edward Leigh (Gainsborough, Conservative) moved the rejected new clause which stated[1]:
   
  :âAfter [http://www.legislation.gov.uk/ukpga/2007/3/part/3/chapter/2/crossheading/personal-allowances section 37 of the Income Tax Act 2007], insertâ
  
  "â37A Transfer of personal allowances between spouses
  
  :(1) This section applies to an individual who is entitled to a personal allowance under [http://www.legislation.gov.uk/ukpga/2007/3/part/3/chapter/2/crossheading/personal-allowances sections 35 to 37] for a tax year ifâ
  
  :(a) the individual is a person whose spouse who is living with the individual for the whole or any part of the tax year, and
  
  :(b) the spouse meets the requirements of [http://www.legislation.gov.uk/ukpga/2007/3/section/56 section 56] (residence, etc).
  
  :(2) Ifâ
  
  :(a) the allowance exceeds the individualâs remaining relievable income;
  
  :(b) the individual makes an election, and
  
  :(c) the individualâs spouse makes a claim, the individualâs spouse is entitled to an allowance for the tax year equal to the amount of the excess.
  
  :(3) The individualâs remaining relievable income is found byâ
  
  :(a) taking the amount of the individualâs net income, and
  
  :(b) subtracting any personal allowance to which the individual is entitled for the tax year.â
  
  
  The amendment contains no definition of "spouse"; and does not mention civil partners. 
  
  During debate Edward Leigh (Gainsborough, Conservative) said[2]:
  :if the new clause is defective, I am happy to withdraw it and for the Government to bring back a new clause that includes civil partnerships. I make it absolutely clear that we have nothing against civil partnerships.
  
  A HMRC [http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm11032.htm definition of "spouse" for use in relation to inheritance tax] includes parties to a valid polygamous marriage.  
  
  * [1] [http://www.theyworkforyou.com/debates/?id=2011-06-28a.826.2#g826.3 Edward Leigh (Gainsborough, Conservative), House of Commons, 28 June 2011]
  * [2] [http://www.theyworkforyou.com/debates/?id=2011-06-28a.826.2#g872.5 Edward Leigh (Gainsborough, Conservative), House of Commons, 28 June 2011]
  
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  