Questions and Answers
What is the Marriage Allowance?
What is Marriage Allowance and how do I know if my partner and I qualify?
By Catherine Heinen, FCCAMarriage Allowance is a transferable amount of personal allowance between spouses and civil partners which may be a tax saving relief.
Marriage Allowance can save income tax by up to £252 in a tax year, where the lower earner has income below the personal allowance. The transferral of your personal allowance may mean that you pay more tax, but as a couple you may pay less.
For example:
Person A has income of £11,500, which is below their personal allowance of £12,570 and therefore pays no tax.
Person B has income of £40,000, which exceeds their personal allowance of £12,570 by £27,430.
Person A could transfer £1,260 of their personal allowance to person B.
Person A’s taxable income increases to £190, resulting in additional tax to pay of £38. Person B’s taxable income decreases to £26,170, resulting in a tax reduction of £252. Overall, there is a tax saving of £214.
To qualify for Marriage Allowance, throughout the tax year (6th April to the following 5th April) you must both be:
- Not higher or additional rate taxpayers
- UK resident and domiciled
- Married or in a civil partnership with one another
You can apply for Marriage Allowance with HM Revenue and Customs (HMRC) online. You’ll get an email from HMRC confirming your application. Otherwise, you can apply through your self-assessment tax return, or by using Form MATCF and posting it to HMRC.
If your circumstances change, for example you and your spouse or civil partner separate, you’re no longer eligible or want to claim you must cancel Marriage Allowance online or by phone.
At present, you can backdate your claim to include four previous tax years that you were eligible for Marriage Allowance.
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Frequently Asked Questions
Marriage Allowance is £1,260 per tax year. You must transfer all £1,260, you can’t claim some of it.
Date published 2 Mar 2018 | Last updated 18 Nov 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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