Comparison · Tax Allowances · 2026
Marriage Allowance vs Personal Savings Allowance 2026
They share a word, but these are two entirely different tax breaks. Marriage Allowance lets a low-earning spouse hand part of their Personal Allowance to their partner, worth up to £252 a year. The Personal Savings Allowance lets you earn a slice of savings interest tax-free - up to £1,000 a year. Confusing the two is common, and missing either one means paying tax you need not. This 2026/27 guide compares them clearly, shows who qualifies for each, and explains how most couples can claim both at once.
TL;DR - 30-Second Summary
- - Marriage Allowance: couples only, worth up to £252 a year
- - Personal Savings Allowance: individuals, £1,000/£500/£0 of tax-free interest
- - Different things: one shares Personal Allowance, one shelters interest
- - You can usually claim both - they do not conflict
Side by Side
| Feature | Marriage Allowance | Personal Savings Allowance |
|---|---|---|
| What it does | Transfers Personal Allowance to a spouse | Makes savings interest tax-free |
| Who it is for | Married couples and civil partners | Every individual taxpayer |
| Amount | £1,260 transfer = up to £252 saved | £1,000 / £500 / £0 of interest |
| Depends on band | Receiver must be basic-rate | Yes - falls as income rises |
| How to claim | Apply via gov.uk | Automatic |
| Backdating | Up to 4 years | Applied each year automatically |
Worked Example: A Basic-Rate Couple
Take a couple in 2026/27. One partner earns £10,000, below the £12,570 Personal Allowance; the other earns £35,000 as a basic-rate taxpayer and holds savings earning £900 of interest.
| Allowance | Effect | Tax saved |
|---|---|---|
| Marriage Allowance | £1,260 of allowance transferred | £252 for the couple |
| Personal Savings Allowance | £900 interest within the £1,000 allowance | £180 (20% on £900) |
Together the couple keeps £432 they might otherwise have lost: £252 from Marriage Allowance and £180 of tax avoided on interest that falls within the £1,000 Personal Savings Allowance. The two allowances stack because they apply to different things. Check your own position with the income tax calculator.
The One Interaction to Watch
The allowances rarely clash, but there is one trap. The Personal Savings Allowance shrinks as income rises: £1,000 at basic rate, £500 at higher rate, nothing at additional rate. If receiving Marriage Allowance, or extra interest, tips someone over the higher-rate threshold of £50,270, their Personal Savings Allowance halves from £1,000 to £500.
Marriage Allowance itself can only be received by a basic-rate taxpayer, so it cannot be claimed by someone already in the higher-rate band. Keep an eye on where each partner sits relative to the £50,270 threshold when planning.
Who Benefits From Each
- - You are married or in a civil partnership
- - One partner earns below £12,570
- - The other is a basic-rate taxpayer
- - You can backdate up to four years
- - You earn interest from savings accounts
- - You are a basic or higher-rate taxpayer
- - Your interest stays within your allowance
- - You want a Cash ISA once over the limit
Verdict
There is no real either/or here, because these allowances do different jobs and most couples can use both. If you are married with one low earner and one basic-rate taxpayer, claim Marriage Allowance for up to £252 a year and backdate it where possible. Separately, make sure your savings interest sits within your Personal Savings Allowance, and shelter anything above it in a Cash ISA. The only thing to watch is the £50,270 higher-rate threshold, which both reduces the Personal Savings Allowance and rules out receiving Marriage Allowance. Used together, the two quietly save many households hundreds of pounds a year.