Marriage Allowance Transfer

Marriage Allowance transfer allows one spouse to transfer a portion of their Personal Tax Allowance to the other, providing a tax reduction if certain conditions are met.

Who is Eligible?

You may qualify for Marriage Allowance if:

  • You’re married, or in a civil partnership and don’t receive Married Couples’ Allowance.
  • You do not pay Income Tax, or you earn less than your Personal Allowance of £12,570 per year.

How Much Can You Save?

For the current tax year, the transferring spouse can transfer 10% of their Personal Allowance, rounded up to the nearest £10, resulting in a transferable amount of £1,260.

Consequently, the receiving spouse benefits from a basic rate reducer – 20% of £1,260, equating to a £252 reduction in their tax liability annually.

Who can Claim Marriage Allowance?

The process to claim Marriage Allowance varies based on whether you are a PAYE-only taxpayer or if you complete an annual Self-Assessment, but the transfer can be applied in either case.

When you claim Marriage Allowance you transfer £1,260 of your Personal Allowance to your partner. Your Personal Allowance becomes £11,310 and your partner gets a ‘tax credit’ on £1,260 of their taxable income.

How Marriage Allowance Claims are Made?

For PAYE taxpayers, the adjustments are made through tax codes, while for those completing a Self-Assessment, adjustments appear in the tax calculations when preparing their end of year tax return. Claims can be initiated via Self-Assessment, phone, an online application, or a postal claim form.

Enduring Claims

Marriage Allowance will continue from year to year unless cancelled. Taxpayers will need to proactively notify HMRC if they become ineligible to receive it.

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