Wednesday, October 27

Marriage Allowance, UK

Looking for ways to save on tax??? Here is your answer…..

One of the UK Government’s Income Tax relief schemes is the Marriage Allowance. Marriage Allowance lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner, thereby reducing the total tax you pay as a couple by up to £250 in a tax year.

Now, what is this personal allowance?

The standard Personal Allowance is £12,500, which is the amount of income you do not have to pay tax on. It can vary depending on if you claim Marriage Allowance or Blind Person’s Allowance and will be smaller if your income is over £100,000. You do not get a Personal Allowance on taxable income over £125,000.

How it works?

To benefit as a couple, the lower earner must have an income below the standard Personal Allowance. When you transfer some of your Personal Allowance to your husband, wife or civil partner you might have to pay more tax yourself, but you could still pay less as a couple. The below example from the UK government website clearly explains this.

Source: Gov.UK website


Eligibility Criteria

  • you are married or in a civil partnership
  • you do not pay Income Tax or your income is below your Personal Allowance (usually £12,500)
  • your partner pays Income Tax at the basic rate, which usually means their income is between £12,501 and £50,000 before they receive Marriage Allowance

Application for Marriage Allowance is free of cost. If both partners have no income other than wages, then the person who earns the least should make the claim. If either one gets other income, such as dividends or savings, you may need to work out who should claim. Application for Marriage Allowance will result in changes in the Personal Allowance and tax codes for both partners.

  Questions on Germany’s 300-euro child bonus answered!


  • Use the Marriage Allowance Calculator to find out how much tax you could save.
  • For equiries, click here for contact details.
  • You cannot claim Marriage Allowance if you’re living together but you’re not married or in a civil partnership.
  • Application will not be affected if either partner is currently receiving pension or living abroad (as long as you get a Personal Allowance)
  • Marriage Allowance is not to be confused with Married Couple’s Allowance (for this, the date of birth of at least one partner should be before 6 April 1935).
  • One cannot get Marriage Allowance and Married Couple’s Allowance at the same time.
  • You can backdate your claim to include any tax year since 5 April 2016 that you were eligible for Marriage Allowance.
  • In the event of changes in circumstances, for eg. end of the relationship, changes in income, you must cancel the Marriage Allowance.
  • For those in Scotland, your partner must pay the starter, basic or intermediate rate, which usually means their income is between £12,501 and £43,430.