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READ MOREGive the gift of Marriage Allowance on Valentine’s Day
Married couples are being urged to consider giving the gift of Marriage Allowance to their husband, wife or civil partner this Valentine’s Day and save up to £252 a year.
More than 2.1 million couples currently benefit from Marriage Allowance, but HM Revenue and Customs (HMRC) estimates that thousands more couples are missing out because they don’t realise they may be eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.
Customers earning less than £12,570 a year can transfer up to £1,260 of their Personal Allowance to their higher-earning partner to reduce the amount of tax they pay. They can backdate their claim to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief.
Where one or both partners were born before 6 April 1935 might be able to claim a more generous allowance. This means that one member of the couple must be at least 88 years old on 5 April 2023 to qualify for an allowance in the 2022–23 tax year.
For marriages before 5 December 2005, the husband’s income is used to work out Married Couple’s Allowance. However, it can be transferred to the wife.
For marriage and civil partnerships after this date, it’s the income of the highest earner.
Tax relief for the Married Couple’s Allowance is 10 per cent. This means that the higher earning partner gets 10 per cent of the tax they pay.
The benefit has upper and lower limits for both the amount of tax that can be claimed and how much that can be earned.
For the 2022–23 tax year, this could cut your tax bill between £353 and £912.50 a year.
Those who are eligible can apply at GOV.UK for free and keep 100 per cent of their claim. Successful claims will result in a reduction in the amount of tax paid by the higher-earning partner.
Couples could benefit from Marriage Allowance if the following criteria apply:
- They are married or in a civil partnership.
- They do not pay income tax, or their income is below the Personal Allowance of £12,570.
- Their partner pays income tax at the basic rate — which typically means their income is between £12,571 and £50,270.
Marriage Allowance can be cancelled on GOV.UK if a couple’s circumstances change.
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