Married couples and those in civil partnerships are being urged to say ‘I do’ to the Marriage Allowance. At the height of the wedding season, HM Revenue and Customs (HMRC) is reminding couples about the allowance, which allows married couples or people in civil partnerships to share their personal tax allowances.
It can apply if one partner earns below the personal allowance threshold of £12,570 and the other is a basic rate taxpayer. Couples who have been married for years can still qualify. Eligible couples can transfer 10% of their tax-free allowance to their partner, reducing the tax they pay by up to £252 a year.
They can apply at any time throughout the year and, if eligible, could backdate their claims by up to four previous tax years to receive a payment worth up to £1,242. People can claim directly through HMRC’s online portal on GOV.UK to ensure they receive 100% of the tax relief.
Backdated Marriage Allowance payments
You can claim back up to four years’ worth of the tax boost. Below is each tax year and the value of the allowance:
- 2022/23 - £252
- 2021/22 - £252
- 2020/21 - £250
- 2019/20 - £250
- 2018/19 - £238
Marriage Allowance is one of a number of benefits and reliefs available to boost family finances at a time when many are concerned with the rising cost of living.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want to ensure people are receiving vital financial support at a time when they need it most.
“Married couples or those in a civil partnership could potentially receive tax relief worth up to £1,242, meaning extra cash in their pockets.”
More than two million couples currently benefit from the allowance.
Even if couples don’t qualify for Marriage Allowance when they first get married, a change in circumstances years later could mean they become newly eligible.
These include:
- One partner retiring and the other remaining in work
- A change in employment
- A reduction in working hours which means their earnings fall below their Personal Allowance
- Maternity, paternity, or shared parental leave
- Unpaid leave or a career break
- One partner studying or in education and not earning above their Personal Allowance
HMRC also said that if a spouse or civil partner has died since April 5, 2018, the surviving person can still claim by contacting the Income Tax helpline - find out more here.
Marriage Allowance claims are automatically renewed every year, however, couples should notify HMRC if their circumstances change.
Find out more about Marriage Allowance on GOV.UK here.
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