What do you need to know about Marriage Allowance? 

Marriage Allowance (MA) is a relief you can use to boost your finances with your significant other by sharing unused tax allowances. 

It comes as no surprise that March is the most popular month to apply for Marriage Allowance, with couples looking to make last minute tax savings as the end of the tax year approaches. 

When completing an application, there will also be the option to backdate a claim for the last four years – meaning you and your partner could receive a lump-sum payment of more than £1,000. 

It is important you know what the allowance is, and how it can benefit your couple. 

What is Marriage Allowance? 

Marriage Allowance helps couples to save money by allowing you, or your partner, to reduce the amount of tax one partner pays. 

This can be done by transferring up to £1,260 of the lower earner’s Personal Allowance to their husband, wife, or civil partner. 

To benefit from the tax relief, one partner must have an income less than the Personal Allowance of £12,750, and the income (of the highest earner) must be between £12,751 and £50,270. 

The maximum amount that can be transferred to your husband, wife, or civil partner is dependent on the Personal Allowance for each tax year. 

The 2023/24 tax year, for example, holds a Marriage Allowance amount of £252 – this will reduce your tax bill for that specific tax year. 

When part of an individual’s Personal Allowance is transferred to someone else (e.g. a husband, wife, or civil partner), the individual might pay more tax – but not as a couple. 

Who can apply? 

A relationship might be eligible for Marriage Allowance, if all of the following apply: 

• The couple are married or in a civil partnership 
• Either partner does not pay Income Tax/their income is below their Personal Allowance  
• An individual’s partner pays Income Tax at the basic rate (this usually means their income is between £12,571 and £50,270 before they receive MA). 

It is crucial you know that you cannot claim Marriage Allowance if you are not married or in a civil partnership. 

Personal Allowance will transfer automatically to an individual’s partner every year until the Marriage Allowance is cancelled. 

This might happen if an income changes or if a relationship ends. 

For more information on Marriage Allowance, please click here. 

If you and your partner would like to receive Marriage Allowance but are unsure how to do so, please contact us today.