If you earn less than the £12,570 personal tax allowance in the UK, you may be missing out on a valuable financial perk. The Marriage Allowance allows you to transfer part of your unused allowance—up to £1,260—to your spouse or civil partner.
This can save your household up to £252 annually in tax. Here’s a detailed look at who qualifies, how it works, and why it’s essential for low‑income couples.
What Is the Marriage Allowance?
The Personal Allowance lets each individual earn up to £12,570 tax-free. When one partner earns less than this, they can transfer up to 10% (£1,260) of this allowance to a partner earning between £12,571 and £50,270, reducing their tax liability.
- Transferred amount: £1,260
- Tax reduction: 20% of transfer = £252 per year
This is a straightforward, tax-free saving credited directly to your payroll or Self Assessment.
Who Qualifies?
To benefit from the Marriage Allowance, you must meet the following:
- Be married or in a civil partnership
- One partner earns below £12,570 and pays no income tax
- The other partner earns between £12,571 and £50,270 and pays tax at the basic rate
- Both must be UK tax residents
Over two million couples qualify but many still miss out each year. It’s worth discussing this with your partner to see if you’re eligible.
Marriage Allowance at a Glance
| Criteria | Details |
|---|---|
| Personal Allowance | £12,570 |
| Transferable Allowance | £1,260 |
| Tax Saving | 20% of £1,260 = £252/year |
| Eligibility (Lower Earner) | < £12,570 income, no tax paid |
| Eligibility (Higher Earner) | £12,571–£50,270 income |
| Backdating | Up to 4 previous tax years |
| Total Potential Backdated Claim | £252 × 4 = £1,008 |
How Does It Work?
- Partner A earns under £12,570 and pays no tax.
- They transfer £1,260 of unused allowance to Partner B.
- Partner B pays £252 less tax per year (20% of £1,260).
If applied during the current tax year, your tax code adjusts automatically. If backdated up to four years, you could receive a tax refund of up to £1,008 in one lump sum.
Why This Matters
- Boost household finances without spending a penny
- Provides fairer distribution of tax relief for couples with unequal earnings
- Generates significant savings over time—it adds up!
How to Claim
- Gather details: National Insurance numbers and personal info for both
- Apply online via GOV.UK’s Marriage Allowance page (takes minutes)
- Receive confirmation; tax codes will update to include the allowance
- Monitor your pay or Self Assessment—saved tax appears automatically
If eligible and claiming for previous years, the refund should arrive shortly after approval.
The Marriage Allowance is an easy, effective way for couples to share their Personal Allowance, potentially saving up to £252 annually. For low‑earning households—especially retirees, part-time workers, or those living off benefits––it can provide a welcome financial boost.
With over two million couples missing out, it’s worth checking your eligibility and applying. Take a few minutes to secure this tax relief—you may soon see the difference in your bank account.
FAQs
Who can transfer Marriage Allowance?
The partner earning under £12,570 can transfer up to £1,260 of their Personal Allowance.
How much can couples save?
They can save up to £252 per year, and potentially £1,008 by backdating for four years.
Do I need to reapply each year?
No—you apply once per couple. Just update or withdraw the claim if your circumstances change.