Married couples and civil partners across the UK could be missing out on hundreds of pounds each year by overlooking a simple but powerful tax rule from HM Revenue and Customs (HMRC).
While every individual gets a standard Personal Allowance of £12,570 – the amount you can earn before paying income tax – a provision known as the Marriage Tax Allowance lets couples share this benefit if one partner is a non-taxpayer.
How the Marriage Allowance Works
The mechanism is straightforward. If one person in a marriage or civil partnership has an income below their Personal Allowance and therefore does not pay tax, they can transfer 10% of their allowance to their basic-rate-taxpaying partner.
This transfer, which must be applied for via the government's website, adjusts the figures for both individuals. The non-taxpayer's allowance reduces to £11,310, while the taxpayer's combined allowance rises to £13,830.
As financial expert Martin Lewis of Money Saving Expert explains, the financial gain is clear. "That 10% extra, they would have paid tax on it at 20%, so the gain there is £252 a year," he stated.
Claim Back Four Years for a Major Boost
There is significant urgency for those who have not yet claimed. The current tax year ends on April 5, and applications must be completed before this date to secure the benefit for 2025/26.
Critically, eligible couples can backdate their claim for up to four previous tax years. This means a potential total windfall of £1,258 in reclaimed tax. "For the current year, your tax code is altered, and for past years, you receive a cheque or bank transfer," Martin Lewis added, emphasising the process.
Eligibility and Important Considerations
HMRC outlines that to benefit, the lower earner must normally have an income below the Personal Allowance threshold of £12,570. The receiving partner must be a basic rate taxpayer.
It is vital to note that transferring part of your allowance might result in you paying slightly more tax individually, but the couple as a whole should see a reduction. The government advises using its online calculator to estimate the savings.
Anyone with more complex income from dividends, savings, or benefits should call the Income Tax helpline directly to discuss their eligibility.
With the deadline fast approaching, checking your eligibility for the Marriage Tax Allowance is a quick financial check that could put hundreds of pounds back in your pocket.
