Marriage tax allowance
Get a tax break worth up to £1,250
If you’re under 89 years old and married or in a civil partnership, you might qualify for a tax break worth £1,260 known as the marriage tax allowance. Surprisingly, about two million eligible couples miss out on this benefit. Applying is simple and straightforward. This guide will explain who qualifies and how to claim it effectively.
Warning: Be cautious when searching for ‘marriage tax allowance’ online. Some unscrupulous companies may try to charge you for the application process by appearing official. However, applying is completely FREE. Use our guide and the official links provided below to ensure you do it safely and without any cost.
What is the marriage tax allowance and who can get it?
The Marriage Tax Allowance enables you to transfer up to £1,260 of your personal allowance to your spouse or civil partner, provided they have a higher income than you. This allowance refers to the amount of income you can earn each tax year without paying tax. It applies to all taxable income, including salaries, pensions, and other earnings—meaning even pensioners receiving a pension might be eligible.
If your application is approved, the higher earner’s tax bill will be reduced for the current tax year. Additionally, you may be able to backdate your claim if you meet the eligibility criteria. However, this allowance is only available to individuals in specific circumstances:
- To qualify, you must be married or in a civil partnership. Simply cohabiting does not meet the criteria.
- One partner must be a non-taxpayer, typically earning less than the £12,570 personal allowance between 6 April 2024 and 5 April 2025. For the maximum benefit, the non-taxpayer’s income should ideally be £11,310 or less.
- The other partner must fall into the basic 20% tax rate bracket. This generally applies if your earnings are under £50,270, or £43,662 if you reside in Scotland. Those in the higher or additional tax rate brackets are not eligible.
- Additionally, both partners must have been born on or after 6 April 1935. If this does not apply, you might qualify for a different tax benefit.
Put simply, one of you needs to be a non-taxpayer, while the other should fall into the basic-rate taxpayer category. However, it’s not always as straightforward as it sounds. Before proceeding, make sure to go through these essential checks:
Watch out if you’re close to the income limit
When a non-taxpayer’s income falls between £11,310 and £12,570, you and your partner might not fully benefit from the marriage tax allowance due to how the tax system is structured. In certain situations, despite being technically eligible, you could even lose money.
Therefore, if your income as a non-taxpayer exceeds £11,310, it’s important to verify whether applying for the marriage tax allowance will truly be advantageous before proceeding.
Not sure if you’re a non-taxpayer?
In certain situations, your personal allowance—the tax-free income you’re entitled to—might differ from the standard amounts mentioned above. Your tax code letter will provide this information. This variation could be due to factors such as having a company car, owing tax, or earning savings interest that exceeds the threshold (refer to savings interest for details). For further help understanding tax codes, use our Free Tax Code Calculator.
Taxpaying partner earning just over £50,270?
The marriage tax allowance helps reduce the tax liability of your spouse or civil partner.
This reduction is achieved by transferring a portion of your personal allowance to them. However, it’s important to note that this transfer does not increase their personal allowance or alter the income threshold at which they would begin paying higher-rate tax.
This distinction is crucial because individuals earning slightly above £50,270 are not eligible for the marriage tax allowance. Transferring a personal allowance cannot lower their income into the basic rate tax band.
As mentioned earlier, to qualify for the allowance, the recipient must be a basic rate taxpayer earning less than £50,270.
Increasing your pension contributions might make you eligible though
If your income exceeds £50,270 but pension contributions reduce your take-home pay below this threshold, you may still be eligible for the Marriage Tax Allowance.
For those under the pay-as-you-earn (PAYE) system, HM Revenue & Customs (HMRC) typically tracks your pension contributions automatically. However, if you file a self-assessment tax return, ensure you declare your pension contributions accurately. This will help HMRC verify that your adjusted take-home pay falls under the £50,270 limit.
If your pension contributions vary from month to month or you’re uncertain about your tax bracket for the year, HMRC advises waiting until the tax year ends to determine whether you should apply.
How much can I get?
Marriage Tax Allowance for 2024/25: How Much Is It Worth? The marriage tax allowance for the 2024/25 tax year can save you up to £252. Once your application is approved, the tax benefit is automatically applied in subsequent years, meaning you don’t need to reapply annually.
Additionally, you may be able to backdate your claim for up to four previous tax years if you were eligible during that time. As of now, you can claim for the following tax years: 2020/21, 2021/22, 2022/23, and 2023/24.
Here’s how much the allowance is worth for each year:
- 2024/25 – £252
- 2023/24 – £252
- 2022/23 – £252
- 2021/22 – £252
- 2020/21 – £250
If you make a claim for this tax year and backdate it for the maximum four years, you could receive up to £1,258. There’s no need to tick any additional boxes or make a special request for this to happen – it will be processed automatically. If you’re uncertain about your eligibility, use HMRC’s marriage tax calculator to check if you’re able to claim.
This guide refers to allowances and thresholds for the 2024/25 tax year. However, as mentioned, you can also backdate your claim for up to four previous tax years.
How the marriage tax allowance is calculated
A partner with unused personal allowance can transfer £1,260 of it to their spouse or civil partner, which represents 10% of the total allowance. The transfer amount is fixed at £1,260 and cannot be adjusted.
Here’s an example to show how it works:
Mark works part-time at a local fish and chip shop, earning £5,000. With a full personal allowance of £12,570 for the year, he has plenty of unused allowance, allowing him to transfer £1,260 to his wife.
Rebecca, Mark’s wife, works full-time as a software developer and has a salary of £35,000. As a basic-rate taxpayer (with higher-rate tax beginning at £50,270 for most), her personal allowance increases to £13,830 when Mark makes the £1,260 transfer.
This means Rebecca receives an additional £1,260, which would have been taxed at 20%. Instead, this amount is now tax-free, resulting in a tax saving of £252 (20% of £1,260).
How and when will I get the money?
It depends on the year you’re referring to:
For the current tax year, the higher earner will experience a minor reduction in tax on their take-home pay. This is achieved by adjusting the recipient partner’s personal tax code. The partner who transferred their personal allowance will also be assigned a new tax code, if they are employed.
- When will you notice a change in your take-home pay? Typically, it takes about two days to receive a new tax code. However, when the adjustment affects your pay depends on whether your employer receives it before the payroll cut-off date. For instance, if you’re paid on the 25th of the month and your employer receives your new tax code on the 10th, it will likely apply in that month’s payroll. If they receive it on the 23rd, you may need to wait until the following month for the update.
- Are you self-employed? If you’re self-employed, your self-assessment tax bill will be reduced as HMRC accounts for your larger personal allowance.
If you’re backdating a claim for previous years, you will receive a payout, either by bank transfer or cheque.
- How long until you receive the payment? For online claims, HMRC processes them in about two weeks, and you’ll see the money in your account shortly after. If you submitted a paper form, it may take between 24 to 29 working days from the time HMRC receives it for the payment to be issued.
How to apply
To claim the marriage tax allowance, the non-taxpayer must submit an application. The process is straightforward and takes just a few minutes via the HMRC website. You’ll need your own and your partner’s National Insurance numbers, along with two acceptable forms of identification for the non-taxpayer. If you encounter any issues applying online, you can simply call HMRC at 0300 200 3300 and complete the application by phone.
It’s important to remember that you can only apply for years when both you and your partner meet the eligibility requirements. For instance, if you earned more than the £12,500 personal allowance in the 2020/21 tax year, you will not be able to make a claim.
If the taxpayer applies, the process will be incorrect and won’t be successful. Here’s what you can expect:
- Once you complete the application, you will receive an email confirmation that your application has been successfully received (you can also apply by phone). If you were eligible for the allowance in previous tax years, you will need to indicate this during the application process.
- While it is your responsibility to ensure your eligibility, HMRC will send you a notification if you’re not eligible—though it may take a few weeks to receive this response.
- There is no official deadline for submitting your application, but if you’re looking to apply retroactively to the 2020/21 tax year, you must do so before 5 April 2025. For applications related to the current tax year, the allowance is applied by adjusting your tax code for the remaining months of the year.
You do NOT have to apply every year. Your personal allowance will be automatically transferred to your partner until you notify HMRC of any changes. If the relationship comes to an end, either partner can cancel the allowance. However, if the cancellation is due to a change in circumstances – such as a shift into a higher tax bracket due to a change in employment – it is the person who originally made the claim that must cancel the allowance.
Once you’ve applied, you (or your partner) will get the extra allowance either:
- By changing the higher earner’s tax code, which can take up to two months, OR
- When they file their self-assessment tax return.
Be careful if the non-taxpayer is only just below the tax threshold
Marriage Tax Allowance: Who Benefits and Who Might Miss Out. Most couples can take advantage of the marriage tax allowance, but there are situations where it may not be beneficial—so it’s important to check whether you fall into one of these categories before applying. We often get asked if there are cases where claiming the marriage tax allowance isn’t worth it. This is a valid question, as there are scenarios where applying could actually result in a financial loss. In some cases, the non-taxpayer might even end up paying tax, but not enough to make up for the potential benefit.
In this article, we’ll explore these two situations in detail, providing examples to help clarify.
There’ll be a slight GAIN if one of you is a non-taxpayer earning just below £12,570 and the other’s a basic-rate taxpayer earning comfortably above
If you’re not a taxpayer and your income is just under £12,570, transferring £1,260 of your personal allowance to your partner may result in you being required to pay income tax (unfortunately!).
That said, in many situations, it can still be beneficial to apply for the marriage tax allowance—especially if your partner’s income is well over £12,570. Even if you find yourself with an income tax bill, the tax reduction your partner receives should more than compensate for the amount you’re paying. Here’s an example:
Mark has an income of £11,970 and doesn’t pay tax because his earnings are below the personal allowance of £12,570. His wife, Rebecca, earns £16,070 and is a basic-rate taxpayer, meaning she pays 20% tax on the £3,500 above the personal allowance. If Mark chooses to transfer some of his personal allowance to Rebecca, he must transfer the full £1,260. This reduces Mark’s personal allowance to £11,310 (£12,570 minus £1,260) and increases Rebecca’s allowance to £13,830 (£12,570 plus £1,260).
As a result, Mark will now earn £660 above his adjusted personal allowance of £11,310, meaning he will pay £132 in basic-rate tax (20% of £660). Meanwhile, the £1,260 transfer boosts Rebecca’s personal allowance, allowing her to save £252 (20% of £1,260). Together, Mark and Rebecca’s total benefit from the transfer is £120.
There’ll be a LOSS if one of you is a non-taxpayer earning just below £12,570 and the other’s a basic-rate taxpayer earning just above
Here’s a situation where applying for the marriage tax allowance could result in a financial loss. This occurs when the amount lost by the non-taxpayer exceeds the benefit gained by the taxpayer. To clarify, let’s look at a different example:
Mark’s annual earnings amount to £11,970, making him a non-taxpayer since his income is below the £12,570 personal allowance. His wife, Rebecca, earns £12,870, which places her in the basic tax rate bracket, as she is taxed 20% on the £300 exceeding the personal allowance. If Mark opts to transfer a portion of his personal allowance to Rebecca, the full £1,260 must be transferred. This reduces Mark’s allowance to £11,310 (down from £12,570) and effectively raises Rebecca’s personal allowance to £13,830 (increased by £1,260).
After the transfer, Mark’s taxable income exceeds his adjusted personal allowance by £660, which means he will pay £132 in basic-rate tax (20% of £660). On the other hand, the £1,260 increase in Rebecca’s personal allowance means she will save an additional £60, which is the 20% tax on the £300 that would have otherwise been taxed.
In total, Mark and Rebecca face a net loss of £72, indicating that in some cases, couples may not benefit from transferring personal allowances.
Marriage tax allowance FAQs
Q – What happens if we divorce, dissolve our civil partnership or want to cancel the marriage tax allowance?
A – To cancel the allowance, you must contact HMRC.
Q – Will I be fined if I’ve applied in error?
A – While it’s improbable that your application would be approved without meeting the eligibility criteria, you will not face any fines. If your application is approved, any outstanding tax will be recovered through a PAYE code adjustment.
Q – Could I end up paying more tax?
A – Submitting an application could trigger HMRC to review your tax status. With millions of individuals on incorrect tax codes, this might result in notifications about owing money to HMRC (or in some cases, receiving a note stating they are due a refund). Some may blame the marriage tax allowance for this, but in reality, it’s simply that your application has prompted HMRC to examine an existing issue. Eventually, you would have been required to settle this balance regardless.
Q – What if one of us is self-employed or both of us are?
A – As long as you meet the specified criteria, you are eligible to apply. The only distinction is that if the recipient partner is in self-assessment, it will help lower their self-assessment bill.
Q – I have savings interest – can I still get the marriage tax allowance?
A – The concept of a non-taxpayer can be quite complex, especially when factoring in the tax-free savings allowance for individuals with lower incomes. This is a distinct £5,000 tax-free allowance designed for those who only earn income from savings.
What’s important to note is that even if you receive interest from savings, you can still qualify for and benefit from the marriage tax allowance, as long as you are not considered a taxpayer.
Q – What happens if we’ve applied and then cease to be eligible midway through the tax year?
A – There are several situations where tax status might change, such as when a taxpayer receives a pay rise that moves them into a higher tax bracket, if they have variable income, or when a non-taxpayer begins working.
In these cases, HMRC won’t be aware of the change until the tax year concludes, due to the way taxes are calculated. It is important to note that even if a taxpayer briefly enters the higher tax band, they won’t be taxed at the higher rate unless their total income for the year surpasses £50,270 (£43,662 in Scotland).
Once the tax year ends, HMRC will perform a tax reconciliation, issue a P800 calculation, and recover any outstanding tax owed. This will typically be adjusted in the following year through a modification of your tax code, either via payroll deductions or, for the self-employed, through self-assessment.
Q – What if overtime pushes us slightly above the threshold?
A – Your eligibility is determined by your earnings during a tax year. If a non-taxpayer earns under £12,570 in that year, and a basic-rate taxpayer’s total income is below £50,270 (£43,662 in Scotland), you meet the requirements.
If you claim for the current year but exceed the income threshold, any unpaid tax will be collected via a tax code adjustment in the following year.
Q – Can I still apply if my partner has passed away?
A – Yes, widows and widowers can reclaim backdated marriage tax allowance, but only for the period starting from April 2020.
If you and your spouse were eligible for the marriage tax allowance at any time since April 2020, and you didn’t file a claim before your partner passed away, you are still able to apply retroactively.
You will receive the payment for every tax year during which both of you were alive and met the eligibility criteria. Even if your partner passed away on the first day of the tax year, you will still receive the full year’s payment. It doesn’t matter if it was the taxpayer or the non-taxpayer who passed away; you are eligible either way.
To apply, you must contact HMRC’s income tax helpline, where an advisor will guide you through the process.
Keep in mind that if the deceased was the taxpayer, the surviving partner can apply directly to HMRC. However, if the deceased was the non-taxpayer, the individual managing their tax affairs (which might not always be the surviving partner) will need to apply. Whether the surviving partner is responsible for managing a non-taxpayer’s tax matters depends on whether the deceased left a will.
- Where there is a will. An executor will be named. This person will need to contact HMRC.
- Where there isn’t a will. An administrator – normally the closest living relative – will need to contact HMRC instead. See the Gov.uk website for more information on establishing who the closest living relative is.
Q – What happens if my partner dies after we’ve applied?
A – If your partner passes away after you’ve transferred the £1,260 allowance to them, their estate will benefit from an increased personal allowance, meaning less tax will be deducted from the inheritance. Meanwhile, your personal allowance will return to its original amount before the transfer.
In cases where your partner had already transferred part of their personal allowance to you prior to their death, your personal allowance will remain at the higher level for the remainder of the tax year. However, their estate will be subject to the reduced allowance amount.
Q – I was born before 6 April 1935 – why can’t I get this?
A – HMRC is phasing out a special tax benefit that could reduce your bill by up to £1,108 annually. If you’re aged 89 or older, either you or your partner may be eligible for the married couple’s (or civil partner’s) allowance. However, this allowance is only available to married couples or civil partners—unmarried couples, even those living together, will not receive this benefit.
Q – Isn’t this discriminatory against people who aren’t married or who earn more?
A – Yes, marriage is indeed rewarded under government policy. The rationale behind this is that marriage is seen as a foundation for creating more stable family structures.