Marriage allowance is an elective tax break, which means that it has to be claimed from HMRC, it is not a tax break which is automatically applied through your tax code. When it is claimed it allows the partner with the lower income to transfer up to £1,150 (on a 4 year backdated claim) of their personal allowance that remains to the partner with the higher earnings. By doing this couples can reduce the higher earner’s income tax by up to £250 per year.
Eligibility…CALCULATE YOUR REBATE
To be eligible to make a marriage allowance claim, the following criteria need to be met:
• You must be in a marriage or a civil partnership, this is not for co-habiting couples.
• One of the partners in the marriage or civil partnership must be earning more than the Annual Personal Allowance (2019-2020 APA is £12,500)
• One of the partners in the marriage or civil partnership must be earning less than the Annual Personal Allowance (2019-2020 APA is £12,500)
How much can be claimed…
How much can be claimed varies from couple to couple and depends on your individual earnings and how much unused Annual Personal Allowance the lower earning partner has available to transfer. You could transfer up to £1,150 over a 4 year backdated claim to your partner and claim a income tax reduction of up to £250 per year.
How to claim…
You can use our online tool to calculate how much you could potentially claim and then follow the links to make an online claim. The whole application takes just a few minutes.
Please note, this electable tax rebate can be also be applied for directly with UK GOV/HMRC