Married couples or those in a civil partnership could save up to £252 a year by claiming marriage allowance.
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.
People 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 backdate their claim to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief.
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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.
"It’s easy to find out what you may be due - search ‘marriage allowance calculator’ on GOV.UK to get started. By applying on GOV.UK, rather than through a third party, you get to keep 100% of the tax relief due."
Those who are eligible can apply at GOV.UK for free here and keep 100% of their claim. Successful claims will result in a reduction in the amount of tax paid by the higher-earning partner.
Who is eligible for marriage allowance
Couples could benefit from marriage allowance if the following criteria applies:
- they are married or in a civil partnership
- they do not pay income tax, or their income is below the Personal Allowance of £12,570
- their partner pays income tax at the basic rate – which typically means their income is between £12,571 and £50,270
Marriage Allowance can be cancelled on GOV.UK if a couple’s circumstances change. Couples can use the free Marriage Allowance calculator on GOV.UK to check if they are eligible for the tax relief.
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