When the Marriage Allowance was announced in April 2015, the government boasted that some four million married couples and 15,000 civil partners would be able to benefit from it. The Marriage Allowance supports married couples across the country to mitigate their tax burdens – but not everyone who is eligible is taking advantage.
If you’re eligible, you’re allowed to transfer £1,260 of your personal allowance to your husband, wife or civil partner. This could reduce their tax bill by up to £252 in a tax year.
Discover whether you could be entitled to Marriage Allowance, and how to apply for it.
Strict criteria set out by HM Revenue & Customs identifies those of us who are able to qualify for the Marriage Allowance. You’re entitled if:
- you’re married or in a civil partnership (co-habiting couples don’t qualify)
- you don’t pay income tax or your income is below your personal allowance (this is usually £12,570)
- your partner pays income tax at the basic rate of 20%, so their income will be below £50,270. In Scotland, the basic rate band is £12,571 to £43,662.
Working out how much you can claim is easy with HMRC’s online calculator.
If you or your partner was born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead. This can be worth up to £1,037 per year.
The claim must be made within four years of the end of the relevant tax year. Therefore, for the 2023/24 tax year, the deadline is 5 April 2028. This means that you can make a claim for the last four years if you have not done so already. If, in the years since 2016, you have sadly lost your spouse, you can still make a claim.
Visit this link to use HMRC’s online calculator.
There are a number of ways to make a claim if you’re eligible. Using the government website, you can make a claim online. You’ll use the interactive form to input the relevant details and discover whether or not you are eligible. You can then proceed to make your claim.
If you complete a tax return, you can claim for Marriage Allowance through your tax return. You can also complete the Marriage Allowance form which you can access here. If you’re backdating a claim, it’s best to contact the HMRC helpline.
Navigating the world of tax management and looking into making a new claim, or backdating a claim, can be complex. When you speak with one of our financial advisers, they can support you to understand whether you and your family are eligible for this, and other, tax allowances. At AFH, our advisers are dedicated to helping you to make the most of your finances and will be there every step of the way to make it as easy as possible.
This article does not constitute financial advice.
Tuesday 19 September 2023