UK Marriage Tax Allowance: £1,260 Benefit, Eligibility, and Application Process 

A £1,260 tax cut known as the marriage tax allowance may be available to married or civil partnership couples; around 2.1 million qualified couples do not take advantage of this benefit. Applying for and taking advantage of this tax relief is rather simple if you reside in UK. 

UK Marriage Tax Allowance

The UK government’s Marriage Allowance is a tax relief program designed to help married couples or civil partners save money by enabling the lower-earner to pay less in taxes than their partner. 

If your husband or civil partner earns more than you do, you can transfer £1,260 of your Personal Allowance to them under the UK Marriage Tax Allowance. Every tax year, this can save them up to £252 in taxes. To qualify, you must have an income below your Personal Allowance (usually £12,570), and your partner must pay Income Tax at the basic rate. 

To reduce your spouse’s tax liability, you may give your spouse, wife, or civil partner up to £1,260 of your personal tax allowance. You have the option to subsequently file your claim for any qualified tax year starting on April 5, 2019. 

The allowance aims to benefit couples where one partner doesn’t use all of their tax-free allowance and the other is a basic rate taxpayer. It’s not available to those living together without a formal union, and higher or additional rate taxpayers are ineligible. For more detailed information or to apply, you can visit the official GOV.UK website. 

Who can benefit from UK marriage tax allowance?

Couples can benefit from the UK Marriage Tax Allowance if they meet the following criteria:

  • You must meet marital status as they’re married or in a civil partnership. 
  • One partner doesn’t pay Income Tax or has an income below their Personal Allowance, which is usually £12,570.
  • Before obtaining the Marriage Allowance, the other partner’s income must typically fall between £12,571 and £50,270 (or £43,662 in Scotland) due to basic income tax.
  • Your spouse and you ought to reside in the United Kingdom. It will not be possible for you to get the Marriage Allowance if one of you is living overseas.

Applying for Married Couple’s Allowance can be a preferable option if you or your spouse was born before April 6, 1935. Until you cancel your Marriage Allowance through the official UK government website, your Personal Allowance will be transferred automatically to your partner each year. 

UK Marriage Tax Allowance

How much does the UK marriage tax allowance provide?

The UK Marriage Tax Allowance provides the following benefits:

  • £1,260 of your Personal Allowance can be transferred to your spouse or civil partner. 
  • This can reduce their tax by up to £252 in the tax year. 

This allowance is designed to benefit couples where one partner earns less than their Personal Allowance and the other is a basic rate taxpayer. It’s a way to make use of the unused tax-free allowance and save money as a couple. 

How can I get UK marriage tax allowance?

Here’s a step-by-step guide to applying for the UK Marriage Tax Allowance:

  • Ensure that you or your partner earns less than the Personal Allowance (usually £12,570).
  • Gather Required Information such as both partners’ National Insurance numbers and  way to prove your identity online (e.g., UK passport, payslip, or P60).
  • Navigate to the official GOV.UK website to apply for UK married tax allowance. 
  • Sign in using your Government Gateway user ID and password; If you haven’t used Government Gateway before, you’ll need to register and prove your identity.
  • Here, you have to follow the instructions to transfer £1,260 of your Personal Allowance to your partner and submit the application. 
  • Within a day of submitting, you will receive an email confirmation.
  • HMRC will issue new tax codes that reflect the transferred allowance.Your tax code will end with ‘M’ if receiving the allowance, or ‘N’ if transferring it.
  • Check your payslips to ensure your tax code has been updated accordingly.

If you can’t apply online, you can:

  • Apply through Self Assessment if you’re registered for tax returns.
  • Complete the Marriage Allowance form (MATCF) and mail it to the specified address.

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