At the height of wedding season, HM Revenue and Customs (HMRC) reminds couples of the Marriage Allowance, which allows married couples or people in civil partnerships to share their personal tax allowances.
It can apply if one of the partners earns below the £12,570 personal allowance threshold and the other is a basic rate taxpayer – and couples who have been married for years can still qualify.
Angela MacDonald, Deputy Chief Executive and Second Permanent Secretary at HMRC, said: “We want to make sure people get vital financial support when they need it most. Married couples or people in civil partnerships could potentially benefit from tax relief worth up to £1,242, which means extra money in their pockets.
“To find out if you are eligible and how to apply, search ‘marriage allowance’ on gov.uk.”
What is the marriage allowance?
It can apply if one of the partners earns below the £12,570 personal allowance threshold and the other is a basic rate taxpayer – and couples who have been married for years can still qualify.
Eligible couples can transfer 10% of their tax-free allowance to their partner, reducing the tax they pay by up to £252 a year.
They can apply at any time and, if eligible, could backdate their applications up to four previous tax years.
People can apply directly through HMRC’s online portal to ensure they receive 100% of the tax relief they are entitled to. They can visit gov.uk to find out how to apply.
Who can claim marriage allowance?
To apply for marriage allowance, you must meet the following criteria:
you are married or civil partnership
you pay no income tax or your income is less than 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
You cannot claim marriage allowance if you live together but are not married or in a civil partnership.
For those living in Scotland, your partner must pay the Starter, Basic or Intermediate rate, which usually means their income is between £12,571 and £43,662.
This will not affect your application for marriage grant if you or your partner are currently receiving a pension or living abroad, provided you receive a personal grant.
Couples who have experienced a change in their situation could now be entitled to the allowance. These changes may include:
- A recent marriage or civil partnership
- One partner has retired and the other continues to work
- Job change due to Covid-19
- A reduction in working hours which means earnings fall below personal allowance
- Unpaid leave or career break, or a partner studies or is studying and does not earn more than their personal allowance
Even if couples are not initially eligible, a change in circumstances could mean that they become eligible, for example if one partner retires or takes a career break and the other remains at work.
If a spouse or civil partner has died since April 5, 2018, the surviving person can still make a claim by contacting the Income Tax Helpline, HMRC said.
More information can be found on the government website.
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