What is the Marriage Allowance and how does it work?

Full answer

Marriage Allowance is a tax relief that allows one partner to transfer part of their unused Personal Allowance to their spouse or civil partner, reducing the couple's overall tax bill. **2026/27 key figures:** - Transfer amount: **£1,260** (10% of the £12,570 Personal Allowance) - Maximum annual saving: £1,260 × 20% = **£252/year** - Applied as a reduction in the recipient's tax bill (not a cash payment) **Eligibility conditions:** 1. You must be married or in a civil partnership. 2. The **transferring partner** must have income below the PA (£12,570) — i.e. they are not paying income tax. This includes those who are not working, or have very low income. 3. The **receiving partner** must be a **basic-rate taxpayer** only (income between £12,570 and £50,270). Higher-rate taxpayers (above £50,270) are NOT eligible. 4. Both must be non-Scottish taxpayers for the standard claim (Scottish taxpayers use slightly different rules). **How to claim:** Apply online at GOV.UK — it takes around 5 minutes. The Marriage Allowance is automatically renewed each year unless circumstances change. You can also claim via Self Assessment if the receiving partner files a return. **Backdating:** You can backdate claims for up to **4 tax years** — potentially saving up to £1,008 in one go (4 × £252). HMRC pays backdated amounts as a lump sum cheque or bank transfer. **When it stops:** If the receiving partner becomes a higher-rate taxpayer, you must cancel the allowance. It also stops on divorce, dissolution of a civil partnership, or death. **Married Couple's Allowance:** A separate, higher allowance exists for couples where at least one partner was born before 6 April 1935 — this is different from Marriage Allowance.

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