Married couples are being urged to consider giving the gift of Marriage Allowance to their husband, wife or civil partner this Valentine’s Day, and save up to £252 a year.
More than 2.1 million couples currently benefit from Marriage Allowance, but HM Revenue and Customs (HMRC) estimates that thousands more couples are missing out because they don’t realise they may be eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.
Taxpayers earning less than £12,570 a year can transfer up to £1,260 of their Personal Allowance to their higher-earning partner, to reduce the amount of tax they pay. They can also backdate their claim to include any tax year up to April 6, 2018, which could be worth up to £1,242 in tax relief.
Couples can use the free Marriage Allowance calculator on GOV.UK to check if they are eligible for the tax relief.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want every eligible couple to benefit from marriage allowance tax relief. Couples whose circumstances have changed, perhaps one of them has stopped working or taken a lower paid job, may not realise they are entitled to claim.”
Those who are eligible can apply at GOV.UK for free and keep 100 per cent of their claim. Successful claims will result in a reduction in the amount of tax paid by the higher-earning partner.
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.
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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