Tax

Marriage Allowance Guide UK — Save £252 Per Year on Tax

Learn how Marriage Allowance works in the UK. Transfer £1,260 of your Personal Allowance to your spouse or civil partner and save up to £252 per year on tax.

· 4 min read

Marriage Allowance has been available since April 2015, yet over 2 million eligible couples still don’t claim it — missing out on more than £1,200 in combined savings since it was introduced. If you’re married or in a civil partnership and one of you earns below the Personal Allowance, you could be entitled to an easy £252 tax saving every year.

How Marriage Allowance Works

Marriage Allowance lets the lower earner transfer exactly £1,260 — that’s 10% of the standard Personal Allowance — to their spouse or civil partner.

Here’s the effect:

  • The lower earner’s Personal Allowance drops from £12,570 to £11,310
  • The higher earner’s Personal Allowance rises from £12,570 to £13,830
  • The tax saving is £1,260 × 20% = £252 per year

Because the lower earner already earns below the Personal Allowance threshold, the transferred portion would otherwise go unused. The higher earner benefits from paying less tax on £1,260 of their income.

Eligibility Checklist

Before you apply, make sure you meet all the criteria:

  • ✅ Married or in a civil partnership (living together alone doesn’t qualify)
  • ✅ Lower earner’s income is below £12,570 (including those earning nothing)
  • ✅ Higher earner is a basic-rate taxpayer (income between £12,571 and £50,270)
  • ✅ Both born on or after 6 April 1935
  • ❌ Not eligible if the higher earner pays tax at 40% or 45%
  • ❌ Not eligible if you’re unmarried — cohabiting couples cannot claim

The higher earner’s income limit of £50,270 applies in England, Wales, and Northern Ireland. In Scotland, different thresholds may apply due to Scottish Income Tax bands.

Common Scenarios

Not sure if your situation qualifies? These examples should help:

Scenario Eligible? Annual Saving
One partner earns £0, other earns £30,000 ✅ Yes £252
One partner earns £10,000, other earns £45,000 ✅ Yes £252
Both partners earn £30,000 ❌ No (neither is below £12,570) £0
One earns £8,000, other earns £55,000 ❌ No (higher earner is a 40% taxpayer) £0
One partner on State Pension only (£11,500), other earns £35,000 ✅ Yes £252

The saving is always £252 regardless of the exact incomes, as long as both partners meet the eligibility criteria. There’s no sliding scale — you either qualify for the full amount or you don’t.

How to Apply

Applying is free and takes about 10 minutes:

  1. Go to gov.uk/marriage-allowance
  2. The lower earner makes the application (not the higher earner)
  3. You’ll need both National Insurance numbers
  4. You’ll also need proof of identity (passport, P60, or payslip details)

Once approved, Marriage Allowance renews automatically each year until you cancel it. You don’t need to reapply annually.

HMRC will adjust the higher earner’s tax code — it will change to include the letter M (for the person receiving the allowance). The person transferring will see the letter N in their tax code.

Backdating Your Claim

One of the best features of Marriage Allowance is that you can backdate your claim by up to 4 tax years. If you’ve been eligible since the scheme started but never applied, here’s what you could receive:

Tax Year Saving Cumulative (if backdated from 2025/26)
2025/26 £252 £252
2024/25 £252 £504
2023/24 £252 £756
2022/23 £252 £1,008
2021/22 £252 £1,260

That’s a potential £1,260 lump sum if you backdate the full 4 years plus the current year. The backdated amount is paid as a cheque or direct payment from HMRC, while the current year’s saving comes through the adjusted tax code.

What Happens If You Divorce or Separate

Marriage Allowance continues until the end of the tax year in which you separate. After that:

  • You can cancel it online through your Personal Tax Account
  • If your ex-partner cancels, HMRC will notify you
  • The allowance automatically stops from the following tax year
  • If one partner dies, the surviving partner keeps the benefit for the remainder of that tax year

Marriage Allowance vs Married Couple’s Allowance

These are two different schemes — don’t confuse them:

  • Marriage Allowance is for couples where both partners were born on or after 6 April 1935. It saves up to £252/year.
  • Married Couple’s Allowance is for couples where at least one partner was born before 6 April 1935. It can reduce your tax by between £427 and £1,108/year.

You cannot claim both. If you or your partner were born before 6 April 1935, check whether Married Couple’s Allowance would give you a larger saving.

Beware of Scam Websites

Always apply directly through gov.uk. Several third-party websites charge a fee — sometimes up to 40% of your refund — for submitting what is a completely free HMRC service. You will never need to pay anyone to claim Marriage Allowance on your behalf.

If you see adverts or receive emails promising to claim your “tax rebate” for a fee, ignore them and go straight to the official HMRC page.