The Marriage Allowance was introduced in the 2015/16 tax year enabling spouses and civil partners the option to transfer part of their income tax personal allowance to their spouse or civil partner.
The marriage allowance is often overlooked but could save a couple £252 in any tax year.
You could make a claim:
- During maternity leave
- Where one of you is working part time or
- Where one of you is receiving a pension below the personal allowance.
10% of a spouse’s or civil partner’s personal allowance can be transferred.
The marriage allowance is set at £1,260 and will remain at this level until 6 April 2028 due to the freezing of the personal allowance.
The claim can be backdated for up to 4 tax years as long as the conditions were met during each of those years potentially resulting in a refund of £1,220.
The transferred allowance is given as a tax credit against tax being paid but the marriage allowance cannot be claimed if you are paying tax at more than the basic rate or in Scotland, the intermediate rate. So, the claimant’s income in Scotland will generally be under £43,662.
If one of you is a basic or intermediate rate taxpayer and the other has unused personal allowances, you should claim the marriage allowance even if it is just for one year.
While you are at it, can you extend it and make a 4-year claim?
