HM Revenue and Customs (HMRC) is urging married couples and civil partners across the UK to check their eligibility for a valuable tax break that could be worth up to £1,258. The Marriage Tax Allowance is a long-standing but often overlooked perk that allows couples to reduce their annual tax bill.
What is the Marriage Tax Allowance?
The scheme permits an eligible individual to transfer £1,260 of their personal tax allowance to their spouse or civil partner. The personal allowance is the amount you can earn each tax year before paying income tax, which is currently frozen at £12,570. For the current tax year, this transfer can save the higher-earning partner £252.
To qualify, you must be legally married or in a civil partnership. Both partners must have been born on or after 6 April 1935. Crucially, one partner must be a non-taxpayer, typically earning less than the £12,570 personal allowance. The other must be a basic-rate taxpayer, earning between £12,571 and £50,270 and paying income tax at the 20% rate.
How to Claim Your Tax Back
The application must be made by the non-taxpayer. Once approved by HMRC, the benefit is applied automatically each year, adjusting the higher earner's tax code. A significant advantage is the ability to backdate claims for up to four previous tax years. By claiming for the current year and the maximum backdated period, couples can receive a total lump sum of up to £1,258. Any tax owed from previous years is typically sent via cheque.
Important Eligibility Rules
It is vital to note that the Marriage Tax Allowance is not available to everyone. Higher-rate or additional-rate taxpayers are not eligible to receive the transferred allowance. The policy exists to support couples where one person does not fully use their tax-free personal allowance.
The income tax personal allowance is set to remain at £12,570, having been frozen by the government. This freeze is now expected to continue until the end of the 2030/2031 financial year, making it even more important for eligible couples to claim any relief they are entitled to now.
Financial experts and HMRC are encouraging all married couples and civil partners to review their circumstances promptly. Checking eligibility takes only a few minutes via the government's official website, and it could result in a substantial financial boost for households across the country.
