State pensioners can avoid HMRC tax on State Pension with underused perk

manchestereveningnews.co.uk:

State pensioners have been reminded that they can reduce their tax bill by as much as £252 by taking advantage of an often-overlooked HMRC perk.

The personal allowance is the amount of income that you can earn without paying any tax at all, currently set at £12,570 for anyone who earns under £100,000 a year after pensions and other deductions.

Any earnings above this personal allowance are taxed at the individual's marginal rate, which is 20 per cent on income between £12,571 and £50,270, with higher rates applied to earnings beyond this.

However, if you or your partner earn more than £50,270, you cannot benefit from the marriage allowance perk. This allows a non-taxpayer to transfer £1,260 of their Personal Allowance to their spouse or civil partner who is a basic rate taxpayer, thereby increasing their Personal Allowance and reducing their taxable income.