How Does Marriage Allowance Work?
Marriage Allowance lets the lower earner in a couple transfer £1,260 of their Personal Allowance to their spouse or civil partner, cutting the couple's combined tax bill by up to £252 a year — with backdating worth up to £1,008.
What Is Marriage Allowance?
Marriage Allowance is a government scheme that lets the lower-earning partner in a marriage or civil partnership transfer £1,260 of their unused Personal Allowance to their higher-earning partner. Because the higher earner then pays basic rate tax (20%) on £1,260 less income, the couple saves £252 a year in income tax.
The scheme was introduced in April 2015 and applies across England, Wales, Northern Ireland and Scotland. The mechanics are the same in Scotland, though the Scottish rates mean the saving is still calculated at 20% — Scotland's Starter Rate applies to the transferred amount in the same way.
Who Qualifies?
To be eligible for Marriage Allowance in 2025-26, all three conditions must be met:
- Relationship: You must be married or in a registered civil partnership. Unmarried partners living together do not qualify.
- Lower earner: One partner must have income below the Personal Allowance threshold of £12,570. This includes people who are not working, earning a small wage, or receiving a small pension.
- Higher earner: The other partner must be a basic rate taxpayer — meaning total income between £12,571 and £50,270 in England, Wales and Northern Ireland (£43,663 for the Scottish Higher Rate threshold).
The allowance does NOT apply if the higher earner pays the 40% higher rate or 45% additional rate. If your household income is above £50,270, you cannot use this scheme.
How Much Does It Save?
The maths is straightforward. The lower earner transfers £1,260 of their Personal Allowance to the higher earner. The higher earner then has an effective Personal Allowance of £13,830 instead of £12,570 — and pays 20% less tax on that extra £1,260.
£1,260 × 20% = £252 per year saved for the couple. Paid monthly through PAYE, this is £21 extra in the higher earner's pay packet each month.
How to Claim
The lower-earning partner must make the claim — not the higher earner. You can apply online at gov.uk/marriage-allowance in about five minutes. You'll need both partners' National Insurance numbers and the higher earner's income details.
Once approved, HMRC adjusts the higher earner's tax code. Their new code will be 1383L (representing an allowance of £13,830). The lower earner's code gains an N suffix (e.g., 1257N) to show the allowance has been transferred, while the higher earner's code gains an M suffix (1383M) to show they have received it.
Backdating Your Claim
You can backdate a Marriage Allowance claim to any tax year from 2021-22 onwards where you were eligible. This means up to four years of savings paid as a lump-sum refund directly to your bank account — worth up to £1,008 in total.
| Tax Year | Amount Transferred | Saving |
|---|---|---|
| 2021-22 | £1,260 | £252 |
| 2022-23 | £1,260 | £252 |
| 2023-24 | £1,260 | £252 |
| 2024-25 | £1,260 | £252 |
| Total | £5,040 | £1,008 |
The refund for past years is typically paid into the higher earner's bank account. HMRC updates future tax codes for the current and future years automatically.
Scottish Marriage Allowance
Scottish residents use the same Marriage Allowance mechanism. The £1,260 transfer and £252 saving are identical — the saving is always calculated at 20% regardless of Scottish intermediate rates, because the transferred amount falls within the Starter/Basic Rate bands. Scottish higher rate kicks in at £43,663, so the upper eligibility limit for Scottish higher earners is lower than for the rest of the UK.
Frequently Asked Questions
Who can claim Marriage Allowance?
Married couples and civil partners where one earns below £12,570 and the other earns between £12,571 and £50,270 (basic rate only). The lower earner makes the claim at gov.uk/marriage-allowance.
How much does Marriage Allowance save?
£252 per year (£1,260 transferred × 20% tax rate). Backdate four years for a one-off lump sum of up to £1,008.
Can I backdate Marriage Allowance?
Yes — you can claim back to 2021-22 if you were eligible in those years. Each year backdated adds £252 to your refund, up to £1,008 for four years.