Feb 2016


Are you one of the 3.7 million couples missing out on the Marriage Allowance?

Recent statistics show that only 8% of couples eligible for the Marriage Allowance have actually claimed it, with approximately 3.7 million couples still missing out.

The Marriage Allowance was introduced this tax year, and is a way for couples to transfer a proportion of their personal allowance between them. This could represent a saving of up to £212 per year for eligible couples.

To be eligible for the Marriage Allowance, the following must apply:

  1. You must be married or in a civil partnership.
  2. One of you needs to be earning £10,600 or less (not including any of your £5,000 tax-free savings interest).
  3. The other one of you needs to be a basic-rate taxpayer (couples with a higher- or additional-rate taxpayer aren't eligible for this allowance).
  4. Both of you must have been born after 6 April 1935.

If you are eligible and wish to apply for the marriage allowance, this can be done at www.gov.uk/marriage-allowance by completing the application. After going through the application process you'll be notified immediately if you're eligible for the allowance via email. You can also apply over the phone on 0300 200 3300.

It doesn't matter when in this tax year you apply – you will get the full financial benefit for the full tax year as long as you apply by 5 April 2016.

Once you have successfully applied, there will be no need to apply every year going forward. Your personal allowance will transfer automatically to your partner every year until one of you cancels the marriage allowance or you inform HMRC that your circumstances have changed eg, because of divorce, employment pushing you into a higher rate tax threshold or death.

Posted byVictoria ClarkeinHMRC