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Understanding The Tax Benefits Of Marriage Allowance

Marriage Allowance is a simple tax benefit available to some couples in the UK which can help save taxes every year. Read our guide to find out if you are eligible and how you can apply.

What is Marriage Allowance?

The Marriage Allowance is a UK tax relief that allows people to transfer some of their personal allowance (the amount you can earn before having to pay income tax) between spouses or civil partners.

If you earn less than the personal allowance threshold (currently £12,570 in the tax year 2022/23) and your partner earns between £12,571 and £50,270, you can transfer up to £1,260 of unused personal allowance and receive a tax credit of 20% of this amount, currently £252.

Please note that these rule apply to England and there are different rules for Wales, Scotland and Northern Ireland.

Eligibility Criteria For Marriage Allowance

To be eligible for Marriage Allowance, both partners must meet certain criteria:

You’re married or in a civil partnership and are not currently in receipt of Married Couple’s Allowance.

You do not pay income tax or you earn less than your Personal Allowance so are not liable to tax. For the tax year 2022/23, this means an income of less than £12,570.

Your partner pays tax on their income at the basic rate so is not liable to higher or additional rate taxes. This means your partners income is between £12,571 and £50,270 before Marriage Allowance.

The Benefits of Marriage Allowance

The financial benefits of Marriage Allowance can be significant, especially for couples with one partner earning significantly less than the other.

This will not just reduce the amount of tax they have to pay but also help increase their household income.

Tax Year Marriage Allowance

2022/23 £252

2021/22 £252

2020/21 £250

2019/20 £250

2018/19 £238

Marriage Allowance Calculator

A marriage allowance calculator is a tool to help you calculate your eligibility for Marriage Allowance.

You can use the free Marriage Allowance Calculator on GOV.UK to check if you could be eligible for the tax relief and how much you would save.

These thresholds are subject to change each tax year, so it is important to check the latest information from HM Revenue and Customs (HMRC) to ensure you are eligible and understand the amount of Marriage Allowance you may be able to claim.

This calculator also includes the rule differences for Scotland, Wales and Northern Ireland.

Marriage Allowance FAQ’s

Here are some of the common questions people also ask.

Can you claim Marriage Allowance if you live together?

You cannot claim Marriage Allowance if you’re living together but you’re not married or in a civil partnership.

Marriage Allowance or Married Couples Allowance?

If you or your partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead. If you and your partner were born on or after 6 April 1935, you may be able to claim Marriage Allowance instead.

Will Marriage Allowance transfer every year automatically?

Yes, your Personal Allowance will transfer automatically to your partner every year until you cancel Marriage Allowance. You must cancel Marriage Allowance if you become divorced or your income changes for example.

Can you backdate Marriage Allowance Claims?

Yes, you can backdate your claim to include any tax year since 5 April 2018 that you were eligible for Marriage Allowance. Your partner’s tax bill will be reduced depending on the Personal Allowance rate for the years you’re backdating.

Let others know!

Overall, Marriage Allowance can provide a valuable financial benefit for UK couples, helping to reduce their tax bill and boost their joint finances.

Married couples are advised not to miss out on Marriage Allowance.


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