Marriage Allowance - could you be eligible?

Did you know that if your earnings for the year are below the tax threshold you can pass 10% (currently £1,190) of your tax free allowance to your partner if they pay tax at the basic rate of 20%?  Known as the Marriage Allowance this has been available for married couples since 5 April 2015.

The person with the lower income needs to apply to pass the Marriage Allowance to their husband, wife or civil partner.  It is only beneficial if the lower earner earns below the tax threshold and if the higher earner is in the 20% tax bracket.  However if you are eligible you are able to back date your claim to 5 April 2015 as long as you are eligible to claim in each of those years.

Your partner will receive an amended tax code to reflect this change and reduce the tax they are paying on their income.  This change will continue until it is cancelled by you if and when your circumstances change.

The Marriage Allowance could reduce your partners tax payment by up to £238 per year.  The personal allowance changes each year and for 2019-20 will be £12,500 so although you may not have been eligible in previous years if your taxable earnings are below this level you may be eligible in the coming financial year.  It is worth checking your circumstances each year when the personal allowance increases to see if you are eligible to apply.

To receive the Marriage Allowance you apply online through HMRC website.  You can find more details about the Marriage Allowance here along with details of how to apply online.