15 November 2023

HM Revenue and Customs (HMRC’s) online marriage allowance calculator tells couples instantly how much they could reduce their annual income tax bill by. Find out if you could be better off in just 30 seconds.

Marriage allowance lets individuals transfer 10% of their tax-free personal allowance. The maximum amount that can be transferred to their husband, wife or civil partner is dependent on the personal allowance for that tax year.

Couples who may be unaware that they could claim include those where one partner is working and the other has income less than their personal allowance of £12,570, including those who:  

  • have retired
  • have given up work to care for children or elderly relatives
  • are unable to work because of long term health conditions
  • have a part time job
  • have a low paid job.

Marriage allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. It lets the lower earner transfer £1,260 of their personal allowance to their husband, wife or civil partner. This can reduce their tax by up to £252 annually. If eligible, couples can also backdate their claim for the previous four tax years and receive a lump-sum payment worth more than £1,000. To benefit from the tax relief, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland). HMRC has produced a YouTube video to explain who is eligible and how to apply.

HMRC has reported that with around 68% of people in their sixties married or in civil partnerships, many people in this age group may not realise they can claim marriage allowance if they have retired and their partner is still working. You can find out more about marriage allowance, here.

Read the full press release, here.

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