What is a marriage allowance?

The marriage allowance is a tax break that enables married couples or civil partners to transfer a portion of their personal allowance—the annual income that can be earned tax-free—to their partner. The receiving partner will have to pay less tax as a result.

The marriage allowance is separate from the marriage tax allowance, which was a different tax break that applied to married couples and civil partners who were both born before 6 April 1935. The marriage tax allowance was replaced by the marriage allowance in 2015.

Who is eligible for a marriage allowance?

Both partners must reside in the UK in order to be eligible for the marriage allowance, and at least one of them must make less money than the personal allowance. The personal allowance is £12,570 for the 2021–2022 tax year. One partner can transfer up to £1,250 of their personal allowance to their spouse or civil partner if their income is less than this amount. This can lower the recipient’s yearly tax obligation by up to £250.

It’s vital to remember that only married or civilly registered couples are eligible for the marriage allowance. Cohabitational couples or other sorts of unions cannot use it. Additionally, only couples with one spouse earning less than the personal income are eligible for the allowance. They are not eligible for the allowance if both partners make more money than the personal allowance.

Finally, it is not available to additional or higher-rate taxpayers. So both partners need to be basic rate taxpayers to apply.

How to apply for a marriage allowance?

One partner must go online to the government website and complete the application process to be eligible for the marriage allowance. Note that the partner who earns less than the personal allowance must request the allowance, not the partner who is receiving the transfer. Giving both spouses’ National Insurance numbers, birthdates, and job status is a requirement of the application procedure.

Here is the link to make the application:

Apply for Marriage Allowance – GOV.UK (www.gov.uk)

When will you get the marriage allowance tax break?

The transfer of the personal allowance will go into effect at the beginning of the current tax year after the application has been accepted. If you were qualified in the preceding four tax years, you may also request the allowance retroactively. You will have to supply more details about your situation during those years in order to achieve this.

We hope this information was helpful! Get in touch with one of our accountants if you have any additional questions about the marriage allowance in the UK.