Understanding Marriage Tax Allowance in the UK: Calculation Guide

Updated on March 23, 2024

We highly recommend that you read this article if you are married and were born in 1935 or later. You can find all the information you require about the Marriage Tax Allowance in this post: What is the UK’s Marriage Tax Allowance? and How Is It Computed?

Marriage Tax Allowance

The UK government established the Marriage Tax Allowance as a tax benefit for married or civilly coupled couples. Depending on their income, households can reduce their annual taxes by up to £250 under this initiative.

You can distribute a portion of your personal tax allowance to your spouse or partner under this plan. As a Marriage Allowance, the higher-earning partner will receive £1,260 in addition to their base Personal Allowance. Thus, the higher-earning partner receives an additional tax allowance through this program.

This benefit is only available to married or civil partnership members; cohabiting couples are not. Please read this article, as it contains all the pertinent information you need to know about the Marriage Tax Allowance, including its eligibility, computation, and other details.

What is Marriage Tax Allowance in the UK?

You may give up to £1,260 (in 2024–2025) to your spouse or civil partner in the UK under the Marriage Allowance if you do not use your entire income tax Personal Allowance. Your Personal Allowance, which for the majority of people in 2024–2024 is £12,570, is exempt from taxes.

If you transfer the maximum £1,260 of your personal allowance to your partner, they will be able to earn up to £13,830 in 2024–2024 before having to pay income tax. They could save £252 in taxes a year as a result of this. In the UK, self-employed individuals are also eligible for the marital tax allowance if one partner earns less than £12,500 and the other earns between £12,501 and £50,000.

Marriage Tax Allowance Overview

Article NameMarriage Tax Allowance
CountryUnited Kingdom
Regulating AuthorityGovernment of UK
Marriage Allowance Amount£252
Max Transferrable Amount£1,260
Total Beneficiaries in 2024Around 1.8 million
Govt of UKGOV.UK

Marriage Tax Allowance Eligibility

Should you meet the following conditions, you might qualify for a Marital Tax Allowance:

Despite being married or in a civil partnership, you do not receive Married Couple’s Allowance.
One of you or your partner was born after April 5, 1935.
If your income is less than your Personal Allowance or you do not pay income tax, you are not required to pay taxes.
One of you earns less than the personal allowance.
The other party to the relationship pays income tax at the standard rate of 20%.
In addition, you can claim a Marriage Allowance if your spouse dies on or after April 1, 2015. It is advised that you review these qualifying requirements prior to claiming this tax benefit.

How to Calculate Marriage Tax Allowance?

You can benefit from this system if your spouse or civil partner is a basic-rate taxpayer and you are a non-taxpayer (i.e., earn under the personal allowance). Your spouse may receive up to 10%, or £1,260, of your personal allowance.

Consequently, your partner made £12,570 + £1,260 = £13,830 before income tax. That’s a combined yearly savings of £252 for the household. You may backdate your claim for up to four previous tax years in addition to this tax year. There could be a £1,242 tax break as a result.

If your income is less than £11,310, you are not obliged to pay any taxes. You can still transfer £1,260 in allowance if your income is more than £11,310 but less than £12,570; however, any income over £11,310 will be liable to taxes.

Claiming Marriage Tax Allowance

Keep in mind that you must meet the requirements for each tax year you file for, as the eligibility requirements for basic rate taxpayers and non-taxpayers differ depending on the tax year you are filing for. Couples who meet the requirements could backdate their claim by up to four years and receive a tidy sum of more than £1,200.

If they so want, the person with the lowest income should make a claim for the marriage allowance. You can apply online for a Marriage Tax Allowance via HMRC and GOV.UK. Before you can start the process of applying for your marriage allowance, you will need to gather some personal information.

To be eligible for marriage allowance benefits, you must provide certain documents, such as proof of identity, paystubs, passport information, and your National Insurance numbers. You can use the online tax calculator provided by the UK government to find out how much tax you could save with this tax allowance before filing.

We want to sincerely thank you for visiting this page on our portal about the UK Marriage Tax Allowance.

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