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.