There’s good news for couples just who are only just becoming aware of the UK marriage allowance, which came into effect on the 6 April 2015, as claims can be backdated for up to four years.

But how do you know if you are missing out on your share?

What is the marriage allowance?

In simple terms, the Marriage Allowance allows an individual to transfer 10% of their personal allowance, which is £12,500 in 2020/21.

This means the amount that can go to their spouse or civil partner is £1,250. If you’re a basic rate tax payer, then 20% of this allowance is then given as a reduction in the recipient’s tax bill, and this can result in anything up to a £250 tax saving for the couple.

Marriage allowance criteria

Your partner should pay Income Tax at the basic rate, which usually means their income is between £12,501 and £50,000, before they are eligible to receive Marriage Allowance

In order to be eligible for marriage allowance, there are various criteria that first need to be met.

You can find more information about the criteria here.

Marriage allowance benefits

As the marriage allowance was introduced in 2015, and the backdate is up to four years, you can claim and transfer your personal allowance for 2016/17 and the tax years after that.

However, it is no longer possible to claim for 2015/16.

It is important to remember that you will only receive the full benefit of the marriage allowance if:

  • The person giving up the allowance is not using it.
  • The person receiving the tax reduction can use it.

This can result in the following tax savings for couples:

  • 2019/20 tax year: the personal allowance was £12,500, meaning £1,250 can be transferred (maximum £250 tax saving)
  • 2018/19 tax year: the personal allowance was £11,850, meaning £1,190 (rounded up) can be transferred (maximum £238 tax saving)
  • 2017/18 tax year: the personal allowance was £11,500, meaning £1,150 can be transferred (maximum £230 tax saving)
  • 2016/17 tax year: the personal allowance was £11,000, meaning £1,100 can be transferred (maximum £220 tax saving).

You can calculate your own Married Couple’s Allowance on Gov.UK.

Marriage allowance time limits

Couples have until 5 April this year to claim back on the 2016/17 period.

Can you help me with the process?

Of course! We can guide you through the process, calculate your allowance, file paperwork and provide practical advice.

Get in touch for an informal chat!