Marriage Tax Allowance

Marriage Tax Allowance
Sep 01, 2020
What is marriage tax allowance?

The marriage allowance is a government scheme designed to give married couples income tax relief. Essentially, you are able to transfer some of your tax-free allowance to your spouse if you make less than the current personal allowance. In doing this, they can reduce their tax bill by up to £250 over the year.

Am I eligible?
  • You need to be married or in a civil partnership
  • One partner must earn under your personal allowance, usually around £12,500
  • The other must earn between £12,501 and £50,000 (anyone who pays the basic 20% tax rate) 1
  • You both need to have been born after 6 April 1935 1.

The non-taxpaying partner can “give” the taxpaying partner £1,250 of their allowance. By adding to their tax-free alliance, they pay up to £250 less. The best way to apply for the marriage allowance is online, where you simply enter your details (or you can also apply by phone if you prefer). The non-taxpayer should complete the application. Once you’ve submitted your application, you’ll receive a letter from HMRC detailing whether or not you’re eligible.

You can use this calculator to work out if you qualify for Married Couple’s Allowance, and how much you might get. You need to be married or in a civil partnership to claim. https://www.gov.uk/calculate-married-couples-allowance

For more information and how to claim visit https://www.gov.uk/married-couples-allowance