HMRC calls on couples to embrace Marriage Allowance

Marriage Allowance offers individuals the chance to transfer part of their Personal Allowance to their husband, wife or civil partner, which could reduce their tax by up to £250 a year.

For some couples, this could mean a backdated payment of up to four years of claims, which could be as much as £1,188, HMRC said.

It is free to apply for Marriage Allowance and HMRC is encouraging customers to claim directly through its online portal to ensure they receive 100 per cent of the tax relief they are eligible for.

Marriage Allowance lets people earning £12,500 or less transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher and they are a basic rate taxpayer.

HMRC said this will reduce their tax by up to £250 for the 2020 to 2021 tax year. Claims can also be backdated to April 2016 until 5 April 2021. After 6 April 2021, couples will only be able to claim back to the 2017 to 2018 tax year.

The same criteria applies for people in married couples and civil partnerships in Scotland, except the partner must pay Income Tax at the starter, basic or intermediate rates between £12,501 and £43,430.

HMRC noted the Personal Allowance rate for the 2021 to 2022 tax year is increasing to £12,570.

Marriage Allowance claims are automatically renewed every year. However, HMRC said couples should notify HMRC if their circumstances change.

“For some, a tax break will be a welcome source of extra cash during these difficult times. I urge couples to take advantage of this offer, which could put up to £250 back in their pockets each year,” said HMRC’s Second Permanent Secretary Angela MacDonald.

“Signing up is simple – the quickest way to claim is through the GOV.UK website, just search ‘marriage allowance’.”