NewsMarriage allowance

Marriage Allowance

Nearly 1.8 million married couples and those in civil partnerships have signed up for the marriage allowance to save up to £252 a year in income tax

HMRC is keen to remind taxpayers to sign up for the allowance after they get married. It is also worth bearing in mind that even if they have been married for years, a change in circumstances could also mean they are newly eligible.

What is marriage allowance?

Marriage allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their personal allowance threshold of £12,570 and the other is a basic rate taxpayer.

How much couple can save if they are eligible for marriage allowance?

They can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2021/22. It means couples can reduce the tax they pay by up to £252 a year. The maximum amount that can be transferred to their husband, wife or civil partner is dependent on the personal allowance for that tax year.

Who can apply for marriage allowance?

You can benefit from Marriage Allowance if all the following apply:

  • you’re married or in a civil partnership
  • you do not pay Income Tax or your income is below your Personal Allowance (usually £12,570)
  • your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance

Can I backdate my marriage allowance claim?

You can backdate your claim to include any tax year since 5 April 2017 that you were eligible for Marriage Allowance.

Your partner’s tax bill will be reduced depending on the Personal Allowance rate for the years you’re backdating.

Are unmarried couples living together also eligible for marriage allowance?

You cannot claim Marriage Allowance if you’re living together but you’re not married or in a civil partnership.

Can I claim marriage allowance if my spouse passed away?

If a spouse or civil partner has died since 5 April 2017, the surviving person can still claim by contacting the income tax helpline.

Marriage allowance
Marriage allowance

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