The marriage allowance applies to couples where one spouse or civil partner doesn’t pay tax above the basic rate threshold for Income Tax, currently earning less than the £12,570 personal allowance for 2023-24.
This allowance allows the lower-earner to transfer up to £1,260 of their tax-free allowance to their spouse or civil partner. It’s usable when the higher-earning partner doesn’t pay more than the basic 20% rate of Income Tax. Meaning they are typically having income between £12,571 and £50,270 (£12,571 and £43,662 in Scotland) for 2023-24.
Through this allowance, the lower-earner can transfer up to £1,260 of unused tax-free allowance to their spouse or civil partner. This potentially saves the recipient £252 or £21 per month in the current tax year. This potentially saves the recipient £252 or £21 per month in the current tax year.
If you meet the eligibility requirements and haven’t claimed the allowance, you can backdate your claim to April 6, 2019, resulting in a potential total tax break of up to £1,256 for 2019-20 to 2023-24.
Couples can use HMRC’s online Marriage Allowance calculator to check eligibility and apply on GOV.UK.