What is the marriage allowance?
Marriage allowance applies to married couples and those in a civil partnership where a spouse or civil partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax (i.e., one of the couples must currently earn less than the £12,570 personal allowance for 2023-24).
How does the marriage allowance work?
The marriage allowance permits the lower-earning partner to transfer up to £1,260 of their personal tax-free allowance to their spouse or civil partner. The marriage allowance can only be used when the transfer recipient (the higher-earning partner) does not pay more than the basic 20% rate of Income Tax. This usually means their income is between £12,571 and £50,270 for 2023-24.
How can I utilise the marriage allowance?
Using the marriage allowance, the lower-earning partner can transfer up to £1,260 of their unused personal tax-free allowance to a spouse or civil partner. This could save up to £252 for the recipient (20% of £1,260), or £21 a month for the current tax year.
How much can I claim from the marriage allowance
If you meet the eligibility requirements and have not yet claimed the marriage allowance, then you can backdate your claim as far back as 6 April 2019. This could result in a total tax break of up to £1,256 if you can claim for 2019-20, 2020-21, 2021-22, 2022-23 as well as the current 2023-24 tax year.
HMRC’s online Marriage Allowance calculator can be used by couples to find out if you are eligible for the relief. An application can then be made online at GOV.UK.
Contact Us
Moore (South) has a tax team that specialises in tax affairs. Our tax team is dedicated to helping people understand their own situation and also to helping they utilise available allowances. If you think that you’re eligible for this scheme but need help with the process of making a claim contact our specialist tax team today.