Marriage Allowance Explained

What is Marriage Allowance?

Marriage Allowance lets the lower earner in a married couple or civil partnership transfer 10% of their Personal Allowance (£1,260 in 2025-26) to the higher-earning partner. The receiving partner then pays tax on £1,260 less income, saving up to £252 per year (£1,260 x 20%).

You can backdate a claim by up to 4 years, potentially recovering up to £1,008 if you were eligible in previous years.

How it works

The lower earner must earn below £12,570 (so they do not use their full Personal Allowance). The higher earner must be a basic rate taxpayer, earning between £12,571 and £50,270 (or up to £43,662 in Scotland).

Apply online at gov.uk. Once approved, the transfer is automatic each year until one of you cancels. The lower earner's Personal Allowance drops to £11,310, and the higher earner's rises to £13,830. HMRC adjusts the higher earner's tax code accordingly.

Cohabiting couples who are not married or in a civil partnership cannot use this allowance.

Real example

Helen earns £8,000 part-time and her husband Alex earns £35,000. Helen's income is below the Personal Allowance, so she pays no tax and has £4,570 of unused allowance.

Helen transfers £1,260 to Alex. His Personal Allowance increases to £13,830, reducing his taxable income by £1,260. At the 20% basic rate, Alex saves £252 per year. Helen still pays no tax because her income (£8,000) remains below her reduced allowance (£11,310).

If they backdate the claim for 4 years, they can recover up to £1,008 in total (4 x £252).

Who does this affect?

Married couples and civil partners where one person earns below £12,570 and the other is a basic rate taxpayer. Common situations include couples where one partner works part-time, stays at home, or is retired with a low income. HMRC estimates that 4.2 million couples are eligible but around half have not yet claimed.

HMRC source

gov.uk/marriage-allowance has the application form and full eligibility details.