HM Revenue and Customs (HMRC) is urging married couples and individuals in civil partnerships to prioritise extra cash on their present lists and apply for Marriage Allowance during the peak of the wedding season.
If one spouse earns less than the Personal Allowance threshold of £12,570 and the other is a basic rate taxpayer, married couples or those in civil unions, including those who have been together for a long time, may split their personal tax allowances.
For the tax year 2022–2023, eligible couples may transfer £1,260, or 10%, of their tax-free allowance to their spouse. Couples can therefore save up to £252 annually on taxes. If qualified, they may backdate their claims for up to four prior tax years and get a payout of up to £1,242 at any time.
Customers are reminded that applying for Marriage Allowance is free and that doing so will ensure they obtain all of the tax benefits to which they are entitled.
One of the perks and reliefs available to improve family finances at a time when many people are worried about the growing cost of living is marriage allowance.
Second Permanent Secretary and Deputy Chief Executive of HMRC, Angela MacDonald, stated:
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.
To find out if you are eligible and how to apply search ‘marriage allowance’ on GOV.UK.
There are presently more than 2 million married couples receiving Marriage Allowance, but there may be thousands more that qualify.
Even if a couple is initially ineligible for Marriage Allowance, a change in circumstances years later may result in them being re-eligible. These consist of:
- 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
The surviving person can still make a claim if their spouse or civil partner passed away after April 5, 2018, by calling the Income Tax helpline.
Every year, claims for the marriage allowance are automatically renewed. Couples should alert HMRC if their situation changes, though.
additional information
10% of a person’s tax-free personal allowance is the marriage allowance. The most they can transfer to their spouse, civil partner, or former spouse depends on their personal allowance for that tax year.
| Tax Year | Marriage Allowance amount |
|---|---|
| 2022/23 | £252 |
| 2021/22 | £252 |
| 2020/21 | £250 |
| 2019/20 | £250 |
| 2018/19 | £238 |
If you are unable to apply for Marriage Allowance online, you may submit a written application to HMRC or a Self Assessment tax return.
The government provides assistance to households. Find out if you qualify for any cost of living assistance by visiting GOV.UK.