The Marriage Allowance: How to Save £252 a Year

The Marriage Allowance is a government scheme that allows you to transfer a portion of your tax-free Personal Allowance to your husband, wife, or civil partner. If you are eligible, it can reduce your combined tax bill by up to £252 every tax year.

How Does it Work?

The standard Personal Allowance for the 2025/2026 tax year is £12,570. This is the amount you can earn before you start paying Income Tax.

If you earn less than £12,570, you are not using your full allowance. The Marriage Allowance lets you transfer £1,260 (10%) of your unused allowance to your partner.

By increasing your partner's Personal Allowance, they will pay tax on £1,260 less of their income. Since they pay tax at the basic rate of 20%, this saves them £252 (20% of £1,260).

Who is Eligible?

To benefit from the Marriage Allowance, all of the following must apply:

• You are married or in a civil partnership.
• One partner does not pay Income Tax, or their income is below the Personal Allowance (£12,570).
• The other partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270. (If you live in Scotland, your partner must pay the starter, basic, or intermediate rate).

You cannot claim the Marriage Allowance if you or your partner pay the higher (40%) or additional (45%) rate of Income Tax.

How to Claim

You can apply for the Marriage Allowance online for free via the gov.uk website. The partner who earns the least (the one transferring their allowance) must make the application.

You will need both of your National Insurance numbers and a way to prove your identity (like a UK passport or driving licence).

Backdating Your Claim

One of the best features of the Marriage Allowance is that you can backdate your claim to include any tax year since 5 April 2021 that you were eligible for. This means if you have been eligible but haven't claimed, you could receive a lump-sum payment of over £1,000.

Once you apply, the allowance will transfer automatically every year until you cancel it or your circumstances change (e.g., your income changes, or you divorce).