HMRC allows to claim Marriage Allowance and Civil Partnerships up to £252 a year

If one partner earns an income under the threshold of £12,570 and the other is a basic rate taxpayer then marriage allowance allows married couples or those in civil partnerships to share their personal tax allowances.

They can transfer a maximum of 10% of their tax-free allowance to their partner that can be £1,260 in the 2021 to 2022 tax year which can reduce the tax they pay by up to £252 a year. The claims can also be backdated up to a total of £1,220 for any of the four previous tax years.

Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance, including:

  • a recent marriage or civil partnership
  • one partner is working and the other one has retired
  • a change in employment due to COVID-19
  • if the earnings fall below their Personal Allowance due to the reduction in working hours
  • unpaid leave or a career break, or
  • one partner is not earning above their Personal Allowance as they are studying or in education

The surviving person can still claim the allowance if a spouse or civil partner has died since 5 April 2017 by contacting the Income Tax helpline.

The Allowance claims are automatically renewed every year. However, couples need to notify HMRC if there are any changes in the circumstances.

Read more on: