Could you benefit from additional tax relief?

Couples may be eligible to reduce their Income Tax by up to £252 a year by sharing their Personal Allowances.

HMRC has announced that nearly 1.8 million married couples and those in civil partnership are using Marriage Allowance to save up to £252 a year in Income Tax.

Marriage Allowance allows married couples, or those in civil partnerships, to share their Personal Tax Allowances if one partner earns below £12,570 a year, and the other is a basic rate taxpayer.

Couples can transfer 10% of their tax-free allowance to their partner (£1,260 for 2021 – 2022 tax year), significantly reducing the amount of annual tax they pay. They can also backdate their claims for the past four tax years, potentially receiving up to £1,220.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary said: “Marriage Allowance lets eligible couples share their Personal Allowances and reduce their tax by up to £252 a year. Nearly 1.8 million couples are already using the service – it is free, quick and easy to apply.”

If a married couple have experienced a change in their circumstances, it may mean they are now eligible for Marriage Allowance. This includes:

  • A recent marriage or civil partnership
  • One partner has retired and the other remains working
  • A change in employment due to COVID-19
  • A reduction in working hours which means their earnings fall below their Personal Allowance
  • Unpaid leave or a career break
  • One partner is studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since April 5th 2017, their partner can still claim by contacting the Income Tax helpline.

While Marriage Allowance claims are usually automatically renewed each year, couples should notify HMRC if their circumstances change.

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