Marriage allowance – a possible tax break for married couples

Many married couples and civil partners don’t realise they could be paying more tax than necessary. If one partner earns significantly less than the other—or doesn’t work at all—the Marriage Allowance scheme could put money back in your pocket. It’s a straightforward way to use your Personal Allowance more efficiently, yet thousands of eligible couples miss out every year. At Severn Accounting, we think it’s worth understanding how it works and whether you could benefit.

What is Marriage Allowance?

Marriage Allowance allows you to transfer unused Personal Allowance to your spouse or civil partner. In the 2024/25 tax year, the Personal Allowance is £12,570. If you earn below this threshold, you’re not using all of your allowance—and potentially wasting tax relief. Marriage Allowance lets your partner claim the unused portion, reducing their tax bill instead.

To be eligible, you must be married or in a civil partnership, and at least one of you must have been born on or after 6 April 1935. Both partners must be UK residents for tax purposes. Importantly, the lower-earning partner must have taxable income below the Personal Allowance, whilst the higher-earning partner must earn above it but below the higher rate tax threshold (£50,270 in 2024/25).

How much could you save?

The amount you save depends on your individual circumstances, but the maximum benefit is worth around £252 per tax year (based on the current Personal Allowance and basic rate tax). That might not sound enormous, but it’s a tax-free saving—and it all adds up. Over several years, Marriage Allowance could return hundreds of pounds to your household without any extra effort once it’s set up.

The relief applies at the basic rate of income tax (20%), so it won’t benefit higher rate or additional rate taxpayers in the same way. However, if your partner is a basic rate taxpayer, the full benefit applies to them.

How to claim Marriage Allowance

The process is straightforward and handled through HMRC. You can apply online using your Government Gateway account, which most taxpayers already have. You’ll need your National Insurance numbers and information about your income. Claims can be backdated up to four years, so if you’ve been eligible but didn’t claim previously, you might recover past overpayments—though you’d need to apply promptly to access older years.

Once you’ve claimed, the relief is usually applied automatically to your tax code, meaning you’ll see the benefit in your pay packet rather than waiting for a tax refund. If circumstances change—either partner’s income increases significantly, for example—you can end the claim at any time with no penalty.

HMRC will write to confirm your claim and explain how the relief has been applied. Keep records of your claim for your own reference and your self-assessment records, particularly if you’re self-employed.

Who shouldn’t claim?

Whilst Marriage Allowance is beneficial for many, it’s not right for everyone. If the lower-earning partner receives certain benefits—such as Jobseeker’s Allowance or Housing Benefit—claiming Marriage Allowance could affect their entitlements, as HMRC may count the transferred allowance as income. It’s worth checking with the relevant benefit provider before claiming.

Additionally, if either partner is a Scottish taxpayer, the thresholds and rates differ slightly, so the benefit may be calculated differently. Non-UK residents generally can’t claim either, though the rules depend on your specific circumstances.

The takeaway

Marriage Allowance is a genuinely useful tax relief that many couples overlook. It requires no change to your working arrangements or lifestyle—simply a one-off claim that could deliver ongoing savings. If one partner earns below the Personal Allowance whilst the other is a basic rate taxpayer, it’s almost certainly worth exploring.

Tax planning doesn’t have to be complicated, and sometimes the simplest solutions deliver the best results. Marriage Allowance is a perfect example of how understanding the tax system can benefit your household finances.

For tailored advice on whether Marriage Allowance is right for your situation—or to discuss any other tax planning matters—contact Severn Accounting. We’re here to help.

For tailored advice, contact Severn Accounting — we’re here to help.