HM Revenue and Customs (HMRC) is encouraging married couples and people in civil partnerships to sign up for a tax break this year.
Marriage Allowance offers individuals the chance to transfer part of their Personal Allowance to their husband, wife or civil partner, which could reduce their tax by up to £250 a year. For some couples, this could mean a backdated payment of up to four years of claims which could be as much as £1,188.
It is free to apply for Marriage Allowance and HMRC is encouraging customers to claim directly through its online portal to ensure they receive 100% of the tax relief they are eligible for.
Angela MacDonald, HMRC’s Second Permanent Secretary, said:
For some, a tax break will be a welcome source of extra cash during these difficult times. I urge couples to take advantage of this offer, which could put up to £250 back in their pockets each year.
Signing up is simple – the quickest way to claim is through the GOV.UK website, just search ‘marriage allowance’.
Marriage Allowance lets people earning £12,500 or less transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher and they are a basic rate taxpayer. This will reduce their tax by up to £250 for the 2020 to 2021 tax year. Claims can also be backdated to April 2016 until 5 April 2021. After 6 April 2021, couples will only be able to claim back to the 2017 to 2018 tax year.
The same criteria applies for people in married couples and civil partnerships in Scotland, except their partner must pay Income Tax at the starter, basic or intermediate rates between £12,501 and £43,430.
The Personal Allowance rate for the 2021 to 2022 tax year is increasing to £12,570.
Customers are urged to cut out the middle man, who may charge a fee, and receive a guaranteed 100% of their eligible entitlement by applying directly to HMRC via GOV.UK.
Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.
Further information
Marriage Allowance was introduced in April 2015.
Marriage Allowance is 10% of an individuals’ tax-free Personal Allowance. The maximum amount that can be transferred to their husband, wife or civil partner is dependent on the Personal Allowance for that tax year.
| Tax year | Marriage Allowance amount |
|---|---|
| 2020-21 | £250 |
| 2019-20 | £250 |
| 2018-19 | £238 |
| 2017-18 | £230 |
| 2016-17 | £220 |
