Marriage Allowance Tax Allowance
Couples who are married or in a civil partnership can claim the marriage tax allowance relief where one spouse earns less than the personal allowance (£12,570) before tax or has no income and the higher earning spouse has basic rate income of up to £50,270.
In other words, one of you needs to be a basic rate payer and the other a non-tax payer.
The maximum amount of the transfer is £1,260 (10% of the personal allowance).
How to apply for Marriage Tax Allowance?
The lower earner applies to HMRC to request the unused allowance be transferred to their spouse. You can apply:
- Online via your Government Gateway (quickest way)
- By writing to HMRC
- Via your Self Assessment Tax Return, if you submit one
How does the marriage allowance pay out?
This is a tax relief and therefore the higher income earner’s tax code shall be adjusted so that they pay less tax at source if they are employed. If self employed, the marriage allowance is included on the Self Assessment Tax Return to reduce the tax liability.
Top tips
- You can back date your marriage tax allowance for up to four years as long as eligible during this time.
- If your circumstances change, you need to notify HMRC as the marriage allowance auto-renews each tax year. You can cancel the Marriage Allowance by logging in your Government Gateway (quickest way) or contacting HMRC on 0300 200 3300.