Millions of married couples and civil partners are missing out on a valuable HMRC tax allowance worth up to £1,260, Money Saving Expert has warned. The Marriage Allowance tax break provides up to £252 per year for eligible couples, and claims can be backdated for up to five tax years, meaning a potential lump sum of £1,260 from the taxman.
Who is Eligible for Marriage Allowance?
Around 2.1 million eligible people have yet to claim Marriage Allowance, according to Martin Lewis's team at Money Saving Expert. The scheme applies to married couples and civil partners where one partner earns less than the personal allowance of £12,570, while the other is a basic rate taxpayer. In Scotland, the higher-earning partner must have an annual income between £12,571 and £43,662.
Martin Lewis explained on BBC and ITV: "Clearly you have to be married or civil partners. Then what happens is this, each of you have your £12,570 personal allowance. That’s the amount you can earn that you don’t pay tax on each year." He added that the scheme applies "provided one of you is aged under 90."
How the Tax Break Works
After transferring part of the allowance, the partner giving up their allowance retains a tax-free allowance of £11,310, while the receiving partner's allowance increases to £13,830. Lewis noted: "Now that 10 per cent extra tax‑free allowance they have, remember they would have paid tax on it at 20 per cent, so the gain there is £252 a year." He added that most couples will be better off as long as the taxpaying partner earns more than £13,830.
How to Claim
HMRC stated that Marriage Allowance "keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year." For the current tax year, HMRC adjusts the recipient’s tax code automatically once a claim is approved. Claims can be backdated, with HMRC issuing any money owed by cheque or bank transfer. Eligible couples are urged to check their eligibility and make a claim to avoid missing out on this significant tax saving.
