Making the Most of Your Marriage Allowance

How married couples and civil partners can transfer unused tax allowances to save money each year.

What Is Marriage Allowance?

Marriage Allowance lets you transfer £1,260 of your personal allowance to your spouse or civil partner. This can reduce their tax bill by up to £252 per year. It's a simple way for couples to save money on tax if one partner earns less than the personal allowance and the other is a basic rate taxpayer.

Who Can Claim?

You can claim Marriage Allowance if you're married or in a civil partnership, and one of you earns less than £12,570 per year while the other earns between £12,571 and £50,270. The lower earner makes the application, which transfers part of their unused personal allowance to their partner.

How to Apply

Applying is straightforward – the lower-earning partner applies online through the government website. You'll need both partners' National Insurance numbers. Once approved, the allowance transfers automatically each tax year and you don't need to reapply. You can also claim for the previous four tax years.

When You Can't Claim

Marriage Allowance doesn't apply if the higher earner is a higher-rate taxpayer (earning over £50,270). It also won't help if both partners earn less than the personal allowance, since neither is paying tax anyway.

Changes in Circumstances

If your circumstances change – for example, the lower earner gets a pay rise or the higher earner becomes a higher-rate taxpayer – you should inform HMRC. The allowance will stop automatically if it's no longer beneficial.

Impact on Benefits

In most cases, Marriage Allowance won't affect means-tested benefits. However, if transferring the allowance means the lower earner's income falls below certain thresholds for benefits, it could potentially reduce benefits received.

Scotland and Wales

Marriage Allowance works across the UK, but Scotland and Wales have different income tax rates and bands for non-savings income. If you live in Scotland or Wales, the savings will be based on those rates.

Marriage Allowance vs Married Couple's Allowance

These are different benefits. Married couple's allowance is for older couples where one partner was born before 6 April 1935 and can be worth more. You can only claim one or the other, not both.

How We Can Help

At Harmond Capital, we review all available tax allowances and reliefs as part of our financial planning service. We'll check if you're eligible for Marriage Allowance and help you claim it.