What happens to Marriage Allowance when one partner dies?

Full answer

Marriage Allowance lets a lower-earning spouse or civil partner transfer 10% of their Personal Allowance - GBP 1,257 of the GBP 12,570 allowance for 2026/27 - to their partner, provided the recipient is a basic-rate taxpayer (gross income roughly GBP 12,571 to GBP 50,270 in England, Wales and Northern Ireland). At the 20% basic rate this is worth up to GBP 251 in tax for the year (GBP 1,257 x 20%). When one partner dies, the allowance is not cancelled mid-year. The transfer remains valid for the whole tax year in which the death occurs, so the surviving partner still benefits from the extra allowance, or the deceased person's estate benefits if it was the deceased who received the transferred amount. HMRC adjusts the records after that year. Importantly, you can also make a backdated claim after a bereavement. If your late spouse or civil partner could have transferred their allowance to you in earlier years but never did, you can claim Marriage Allowance backdated for up to four tax years, including years before they died, as long as both of you met the conditions in each of those years. This can produce a worthwhile lump-sum refund - up to around GBP 250 per qualifying year at the relevant rates. Worked example: a widow who never claimed could backdate four years plus the current year and receive several hundred pounds in total. Who it affects: married couples and civil partners only - it does not apply to cohabiting couples. The lower earner must have unused Personal Allowance, and the higher earner must not be a higher- or additional-rate taxpayer. Use an income-tax calculator to confirm which band you fall into before claiming, and contact HMRC to register or backdate a claim.

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