Marriage Allowance: Transfer £1,260 of Personal Allowance to Your Spouse

Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your spouse or civil partner. If you don't earn enough to use your full allowance and your partner pays basic rate tax, this transfer saves £252 per year in income tax.

It's one of the few UK tax breaks specifically for couples. Around 4 million couples are eligible, but over 2 million haven't claimed it.

#How It Works

The Personal Allowance is the amount you can earn tax-free each year (£12,570 for 2024/25). If you earn less than this, some of your allowance goes unused.

Marriage Allowance lets the lower earner transfer 10% of their Personal Allowance (£1,260) to their partner. The recipient then gets a larger tax-free amount.

The transfer:

• Lower earner's allowance drops from £12,570 to £11,310
• Higher earner's allowance rises from £12,570 to £13,830
• Higher earner pays £252 less tax (20% of £1,260)

The lower earner doesn't lose anything by transferring—they weren't using that £1,260 anyway. The higher earner gains £252.

#Who Qualifies

The lower earner must:

• Earn less than the Personal Allowance (£12,570)
• Be married or in a civil partnership with the recipient

The higher earner must:

• Be a basic rate taxpayer (earning between £12,571 and £50,270)
• Not pay higher rate tax (40%) or additional rate tax (45%)

Both partners must:

• Be born on or after 6 April 1935 (older couples may qualify for Married Couple's Allowance instead)
• Not be claiming Married Couple's Allowance already

#Who This Is For

Typical situations where Marriage Allowance applies:

• One partner works, the other doesn't (stay-at-home parent, retired, studying)
• One partner works part-time earning below £12,570
• One partner is self-employed with low profits
• One partner has only savings or dividend income below the allowance

#Who This Isn't For

Marriage Allowance doesn't help if:

• Both partners earn above £12,570 (neither has unused allowance to transfer)
• The higher earner pays 40% tax (they're not eligible as a recipient)
• You're not married or in a civil partnership (cohabiting couples don't qualify)

#The Numbers

The saving is always £252 as long as both conditions are met. It doesn't vary based on income levels within the qualifying range.

#How to Claim

1. Go to gov.uk/apply-marriage-allowance
2. The lower earner (transferor) must make the application
3. You'll need your National Insurance numbers and government gateway login
4. HMRC will adjust the higher earner's tax code

The claim takes about 10 minutes. Once approved, HMRC adjusts the recipient's tax code automatically. They'll pay less tax through PAYE going forward.

#Backdating Your Claim

You can backdate Marriage Allowance claims for up to 4 tax years. If you've been eligible since 2020/21 and never claimed, you could receive up to £1,260 as a lump sum (4 years × £252, though amounts vary slightly by year as the allowance changed).

The backdated amount is paid directly to the higher earner by HMRC, usually by cheque or bank transfer.

Historical rates:

#When to Cancel

Cancel your Marriage Allowance if:

• The lower earner's income rises above £12,570
• The higher earner's income rises above £50,270 (now a higher rate taxpayer)
• You divorce or separate
• Your partner dies

If circumstances change during the year, the allowance continues until the end of the tax year. You should cancel before the next year starts.

To cancel, contact HMRC or use your online tax account.

#What Happens If You Don't Cancel

If the higher earner becomes a higher rate taxpayer and you don't cancel, their tax code will be wrong. They'll have too large an allowance and will underpay tax during the year. HMRC will catch this and send a bill.

If the lower earner starts earning above £12,570, they'll be undertaxed (their allowance is reduced by £1,260 but their income now exceeds it). Again, HMRC will send a bill.

Cancel promptly to avoid unexpected tax bills.

#Marriage Allowance vs Married Couple's Allowance

These are different schemes with different rules.

Marriage Allowance:

• For couples where one partner earns below £12,570
• Worth £252/year
• Both partners must be born after 5 April 1935

Married Couple's Allowance:

• For couples where at least one partner was born before 6 April 1935
• Worth up to £1,037.50/year (2024/25)
• Based on the older partner's income

You can't claim both. If eligible for Married Couple's Allowance, it's usually worth more.

#Scottish Taxpayers

Marriage Allowance works the same way for Scottish taxpayers. The Personal Allowance is set by Westminster (£12,570) and applies UK-wide.

The saving is still £252 because it's based on basic rate tax (20%), which is the rate at which the transferred allowance would otherwise have been taxed for the recipient. Scotland's different bands don't affect this calculation for Marriage Allowance purposes.

#Self-Employed Partners

If one partner is self-employed with profits below £12,570, they can transfer their unused allowance. The calculation is the same—it's based on taxable income, not employment status.

Self-employed lower earners might find their profits vary year to year. You can claim Marriage Allowance in years when profits are below £12,570 and cancel in years when they're above.

#Common Questions About Eligibility

#We're engaged but not married. Can we claim?

No. Marriage Allowance requires marriage or civil partnership. Cohabiting couples, no matter how long-term, don't qualify.

#I earn below £12,570 but I'm not working. Can we claim?

Yes, if you're married/civil partnered and your partner is a basic rate taxpayer. Your income being zero is fine—you have the full £12,570 unused.

#My partner earns £50,500. Can we claim?

No. Your partner is a higher rate taxpayer (they have income above £50,270). Marriage Allowance only benefits basic rate recipients.

#I have a small pension plus some savings interest. Do I qualify?

Add up all your income. If the total is below £12,570, you qualify as the lower earner. Include pension, savings interest, dividends, rental income—everything.

#We got married last month. Can we claim?

Yes. You can claim for the whole tax year in which you married, even if the wedding was in March. The saving isn't pro-rated.

#Scam Warning

HMRC-approved agents can help you claim Marriage Allowance, but they often charge fees (sometimes 30-50% of the refund). You don't need to pay anyone—claiming directly through gov.uk is free and straightforward.

Be wary of cold calls, texts, or emails offering to claim Marriage Allowance on your behalf. These are often scams or fee-charging services posing as official.

#Interaction with Other Benefits

Marriage Allowance doesn't affect means-tested benefits. The £252 saving isn't counted as income for Universal Credit, tax credits, or other benefits calculations.

It also doesn't affect:

• Child Benefit (based on individual income, not household)
• Tax-Free Childcare eligibility
• 30 Hours Free Childcare eligibility

#Frequently Asked Questions

#How long does the claim take to process?

Usually 2-4 weeks. The backdated amount (if applicable) arrives within a few weeks. The ongoing adjustment appears in your partner's next payslip via their updated tax code.

#Do we need to reapply every year?

No. Once you've claimed, it continues automatically each year until you cancel it or HMRC identifies that you're no longer eligible.

#Can the higher earner make the application?

No. The lower earner (the person transferring the allowance) must make the application. They're agreeing to give up part of their allowance, so they need to initiate it.

#What if my partner dies?

Marriage Allowance continues until the end of the tax year in which they died. You can claim for that year. From the following year, you're no longer eligible (you're no longer married).

If you're the surviving higher earner, you can backdate a claim for up to 4 years of your marriage.

#Does Marriage Allowance reduce my State Pension?

No. It's purely an income tax adjustment. It doesn't affect National Insurance credits, State Pension entitlement, or any other benefits.

#We're separated but not divorced. Can we still claim?

Technically yes, if you're still legally married and meet the income criteria. But you'd need to coordinate with your ex-partner, which may not be practical.