The Marriage Allowance

The Marriage Allowance lets couples reduce their Income Tax bill by transferring part of one partner’s tax-free Personal Allowance to the other.

It is designed specifically for couples where one partner earns less and does not use their entire Personal Allowance.

How It Works

The lower-earning partner can transfer 10% of their Personal Allowance to their spouse or civil partner.

• Amount Transferred: £1,260 of Personal Allowance
• Tax Savings: This reduces the higher-earning partner’s tax bill by up to £252 per year.

Who Is Eligible?

You can claim Marriage Allowance if you meet all of the following criteria:

• You are married or in a civil partnership.
• One partner earns less than the standard £12,570 Personal Allowance.
• The other partner is a basic rate taxpayer.

Important Restriction: You cannot claim Marriage Allowance if either partner is a higher-rate or additional-rate taxpayer. If either partner earns above £50,270, you are not eligible.

Practical Example

• Partner A: Earns £10,000 (Low earner)
• Partner B: Earns £35,000 (Basic rate taxpayer)

The Process: Partner A transfers £1,260 of their unused allowance to Partner B.
The Result: Partner B pays £252 less tax for the year. Partner A still pays £0 tax because their remaining income is well below their adjusted Personal Allowance.

Backdating Claims

If you were eligible in previous years but didn't know about the scheme, you can backdate your claim for up to 4 previous tax years. This can result in a direct tax refund from HMRC for those earlier years.

How to Apply

You can apply online directly through the GOV.UK website via HMRC. Once your application is approved:

1. The tax code of the higher-earning partner is updated automatically (using letters M and N).
2. The tax reduction will change your payroll deductions in real time.

Key Points to Remember

• Transfers exactly 10% of the standard Personal Allowance.
• Saves your household up to £252 per year.
• Strictly unavailable if either partner crosses into the higher-rate tax bracket (£50,270).
• Can be backdated up to 4 years for an immediate refund loop.