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With the tax year ending on 5 April, now is a good time to review your finances. Many couples could reduce their tax bill by using the Marriage Allowance, a tax break that allows one partner to transfer their unused Personal Allowance to their spouse or civil partner.

HM Revenue and Customs (HMRC) say March is the most popular month for applications and for good reason. Not only can you claim for this tax year, but you can also backdate your claim for up to 4 previous years and get a lump sum.

What is the Marriage Allowance?

The Marriage Allowance allows an individual to transfer up to 10% of their tax-free Personal Allowance to their spouse, civil partner, or husband. This is a great benefit for couples where one person has a low income. For this tax year, this simple action could reduce your family’s tax bill by up to £252.

Who is Eligible to Claim?

To claim the HMRC Marriage Allowance, you and your partner must meet specific criteria.

• You must be married or in a civil partnership.
• One person in the couple must have an income of less than the Personal Allowance, which is £12,570. This is the non-taxpayer.
• The other partner must be a basic rate taxpayer. This means their income must be between £12,571 and £50,270.
• For those in Scotland, the higher-earning partner’s income must be between £12,571 and £43,662.

Note this is different from the Married Couple’s Allowance, which is for couples where at least one partner was born before 6 April 1935.

How to Claim the Marriage Allowance

Claiming is easy. The quickest way is to claim online through the GOV—UK service. The lower-income partner should make the claim.

You will need your National Insurance number and your partner’s National Insurance number to complete the application. The online service will guide you through a verification process to confirm your identity before you can proceed.

How Does the Tax Saving Work?

Once you’ve made the claim, HMRC will action the transfer. If your partner is employed or receives a pension, their tax code will be changed to reflect the transfer, and they will pay less tax from their pay. The tax code will usually be changed to ‘M’ for the person receiving the allowance.

If you complete a Self Assessment tax return, you can claim the Marriage Allowance section of the return.

Backdating Your Claim

A significant benefit is that you can backdate your claim for up to four years. If you were eligible in previous years but didn’t claim, you could get a lump sum of over £1,000.

What if My Circumstances Change?

Once you’ve made a claim, the allowance will transfer automatically each year. You don’t need to reapply. But if your circumstances change – for example, due to a divorce or an increase in income – you must cancel the Marriage Allowance. You can do this online or contact HMRC.

To find out if you are eligible, you can use HMRC's online calculator at https://www.tax.service.gov.uk/marriage-allowance-application/benefit-calculator