Chancellor Rachel Reeves has delivered a welcome piece of financial news for married couples and civil partners across the UK as part of the Labour government's second Autumn Budget.
Key Allowances Uprated
Presenting the budget on Wednesday, November 26, the Chancellor confirmed that both the Married Couple's Allowance and the Blind Person's Allowance will be increased. The uplift will match the September 2025 consumer price index rate of 3.8%.
According to official Treasury documents, this change will be made law through a Treasury Order and will officially take effect from 6 April 2026.
What This Means for Couples
For eligible couples, this increase builds on an existing tax benefit that can already reduce a household's tax bill by between £436 and £1,127 annually. The allowance is available to those who are married or in a civil partnership and live together.
The government notes that for couples who married before 5 December 2005, the husband's income is typically used to calculate the allowance. However, for younger couples where both partners were born on or after 6 April 1935, the alternative Marriage Allowance may be more beneficial, allowing the transfer of £1,260 of Personal Allowance and reducing tax by up to £252 per year.
Eligibility and Special Circumstances
The budget provisions also cover various life events that can affect the allowance. When couples marry or form a civil partnership, they receive the Married Couple's Allowance on a pro-rata basis for the remainder of that tax year.
Similarly, if a couple separates due to death, divorce, or formal separation, the allowance continues until the end of the tax year. The government specifically clarifies that couples separated by circumstances rather than choice can still claim the allowance.
It is also possible to transfer the allowance to a spouse or civil partner, providing additional flexibility for families to manage their finances in the way that best suits their situation.
