Marriage Allowance

Marriage Allowance

HMRC is having the drive to encourage people to claim the marriage allowance. 

Introduced in 2015, the marriage allowance enables one partner in a married couple or civil partnership to transfer part of their personal allowance to the other partner. It is worth claiming if one partner is not able to use all of their personal allowances.

HMRC says that about four million couples stand to benefit from the marriage allowance, of which three million have claimed it – leaving one million yet to claim. 

The marriage allowance for 2019/20 is £1,250, generating a potential maximum tax saving of £250/year. You have to transfer the full amount.

People can make a claim now for 2019/20, and also backdate it if eligible (earliest you can go to is 5th April 2015), generating tax returns. It is also possible to make a retrospective claim if one partner has died. 

Marriage Allowance

Couples who are not certain of their income levels in the current tax year may prefer to wait until the end of the year before deciding if a claim for marriage allowance is worthwhile. The Low Incomes Tax Reform Group has some useful guidance and examples about how to decide whether to claim.

You can benefit from Marriage Allowance if all the following apply:

  • you’re married or in a civil partnership
  • you do not pay income tax or your income is below your Personal Allowance (usually £12,500)
  • Your partner pays income tax at the basic rate which usually means their income is between £12,501 and £50,000.

Marriage Allowance

You can apply for a Marriage Allowance online. The person with the lowest income should make the claim. Please follow the link to making the claim;

https://www.tax.service.gov.uk/marriage-allowance-application/eligibility-check

Your Personal Allowance will transfer automatically to your partner every year until one of you cancels Marriage Allowance or your circumstances change, for example, because of divorce or death. 

Please contact us to take our professional help to claim your marriage allowance.

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