Married couples, especially those with a non-taxpaying spouse, can benefit from Marriage Allowance, transferring a portion of their Personal Allowance to their partner, reducing their tax bill. Millions are already taking advantage, but many more may be eligible. Get details on how to claim and backdate your eligibility.
Valentine's Day may be the annual day of love and romance, but for married couples, it could also bring a tax relief windfall, especially if one partner is a non-taxpayer. Marriage Allowance permits a non-tax-paying spouse to transfer 10 percent of their annual tax-free allowance to their basic-rate tax-paying partner.
HM Revenue and Customs (HMRC) guidance explains that this allowance is worth £252 over the 2024/25 financial year, but you can claim back up to four tax years as long as you were eligible during that time, which could result in an impressive £1,258. It's important to note that you cannot claim Marriage Allowance if you are living together but not married or in a civil partnership. More than 2.1 million couples currently benefit from Marriage Allowance, but thousands more may be missing out simply because they don't realize they are eligible. This is particularly true for couples where one partner has either retired, given up work to take on caring responsibilities, or is unable to work due to a long-term health condition. Other couples who may be unaware that they could claim include those where one partner is working part-time or has a low-paid job and the other has income less than their Personal Allowance of £12,570.Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. Most people have a Personal Allowance, usually £12,570 - the amount of income they do not have to pay tax on. Marriage Allowance allows the lower earner to transfer £1,260 of their Personal Allowance to their husband, wife or civil partner. This can reduce their tax by up to £252 annually. To benefit from the tax relief in Scotland, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £43,662. HMRC also advises people to claim online at GOV.UK as it means couples will receive 100 percent of the tax relief due. With around 68 percent of people in their sixties married or in civil partnerships, many people in this age group may not realize they can claim Marriage Allowance if they have retired and their partner is still working. HMRC also explains that if your partner has died since April 5, 2020, you can still claim - phone the Income Tax helpline on 0300 200 3300 for full details. HMRC adds: “If your partner was the lower earner, the person responsible for managing their tax affairs needs to phone.” Below is each tax year and the value of the allowance: Full details about Marriage Allowance can be found on GOV.UK.
MARRIAGE ALLOWANCE TAX RELIEF VALENTINE's DAY HMRC PERSONAL ALLOWANCE COUPLES TAX SAVING GOV.UK
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