How much can I save with Marriage Allowance in 2026/27?

Full answer

Marriage Allowance allows one spouse or civil partner who does not use all of their £12,570 Personal Allowance -- typically because they earn below it, or earn nothing at all -- to transfer 10% of it, £1,260 for 2026/27, to their partner, provided the receiving partner is a basic rate taxpayer (not a higher or additional rate taxpayer). The receiving partner's Personal Allowance increases by £1,260, meaning £1,260 more of their income is tax-free, which at the 20% basic rate saves them £252 a year (20% of £1,260). To qualify, the transferring partner must have income below their Personal Allowance (so they are not already using it all), and the receiving partner's income must keep them within the basic rate band. If the receiving partner is a higher rate taxpayer, Marriage Allowance is not available at all, since the relief is designed to help basic rate households only. The allowance can be backdated up to four tax years if you were eligible but did not previously claim, potentially resulting in a lump sum payment of up to four years' worth of savings (roughly £1,000 across four years at current and recent rates) when you first apply. Once claimed, Marriage Allowance continues automatically each year until either partner's circumstances change (such as income rising above the relevant threshold) or the couple separates, divorces, or one partner dies, at which point it should be cancelled.

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