Marriage Allowance lets you transfer up to 10% of your unused Personal Allowance
to your husband, wife, or civil partner if all of the following apply: -
• you’re married or in a civil partnership
• you do not pay Income Tax, for example, your income is below your Personal Allowance.
• your partner pays Income Tax at the basic rate, or the starter, basic or intermediate rate if they’re a Scottish taxpayer
If you or your partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead. You cannot get Marriage Allowance and Married Couple’s Allowance at the same time.
How To Apply
It’s quick and easy to apply online, go to www.gov.uk and search for ‘Marriage Allowance’. However, if you cannot apply online, HMRC have just released a form to enable you to apply by post. Please see the link at the bottom of this page.
Once you have applied. HMRC will backdate your Marriage Allowance to the start of the tax year (6 April) and 10% of your Personal Allowance will then transfer automatically to your partner every year until you cancel Marriage Allowance.
You must cancel Marriage Allowance if your circumstances change and you’re no longer eligible – for example, if your income changes or your relationship ends.
Backdating your claim
You can backdate your claim for up to 4 tax years that you were eligible for Marriage Allowance. Your partner’s tax bill will be reduced for the years you’re backdating.
If your partner has died within the last 4 tax years, you can still claim – call HMRC on 0300 200 3300. If your partner was the lower earner, the person responsible for managing their tax affairs will need to call.
This can result in couples being able to make the following tax savings:
2022/23 tax year: the personal allowance was £12,570, meaning £1,260 can be given up (maximum £252 tax saving).
2021/22 tax year: the personal allowance was £12,570, meaning £1,260 can be given up (maximum £252 tax saving).
2020/21 tax year: the personal allowance was £12,500, meaning £1,250 can be given up (maximum £250 tax saving).
2019/20 tax year: the personal allowance was £12,500, meaning £1,250 can be given up (maximum £250 tax saving).