Marriage Allowance: Free Money for Couples

If one of you earns less than the personal allowance and the other is a basic rate taxpayer, you could save up to £252 per year with Marriage Allowance. Yet millions of eligible couples don't claim it.

How Marriage Allowance Works

Marriage Allowance lets you transfer £1,260 of your personal allowance to your spouse or civil partner. This reduces their tax bill by up to £252 per year (£1,260 × 20%).

The requirements:

• Transferor: Earns less than £12,570 (the personal allowance)
• Recipient: Earns between £12,571 and £50,270 (basic rate taxpayer)
• Relationship: Married or in a civil partnership

Backdate Your Claim

You can backdate Marriage Allowance claims for up to 4 previous tax years. If you've been eligible but haven't claimed, you could receive a lump sum payment of over £1,000.

For the 2024/25 tax year, you can still claim for:

• 2020/21 — up to £250
• 2021/22 — up to £252
• 2022/23 — up to £252
• 2023/24 — up to £252
• 2024/25 — up to £252 (current year)

Potential total: Over £1,250 in backdated claims.

Who Benefits Most

Retired Couples

One partner has only State Pension (below £12,570), while the other has additional pension income pushing them into the basic rate band.

Couples with One Part-Time Worker

If one partner works part"../../../coming-soon/blog/uk"-time and earns under £12,570, they can transfer allowance to the higher-earning partner.

Couples with a Non-Working Spouse

A stay-at-home parent or carer has zero income but still has a personal allowance—use it!

When It Doesn't Work

• Both earn over £12,570: Both partners are using their own personal allowance
• Higher earner pays 40%+ tax: Marriage Allowance only works for basic rate recipients
• Cohabiting but not married: You must be legally married or in a civil partnership
• Scottish taxpayers: Scotland has different rates, but Marriage Allowance still applies based on UK personal allowance

How to Claim

1. Go to GOV.UK and search for "Marriage Allowance"
2. The lower earner applies to transfer their allowance
3. You'll need National Insurance numbers for both partners
4. Once approved, it automatically renews each year
5. The recipient gets a reduced tax bill through their tax code

Beware of Scam Websites

Only use the official GOV.UK website. Some third-party websites charge fees to submit a claim that you can do for free. The only official address is gov.uk.

How Talk Through Wealth Helps

See how Marriage Allowance fits into your bigger picture:

• Check eligibility based on your income levels
• Calculate the benefit over your retirement years
• Factor Marriage Allowance into household tax planning
• Model changes if income levels shift
• Compare with other tax-saving strategies