Do you qualify for this allowance?

HMRC recently published a reminder targeted at married couples with an unused personal tax allowance. They said:

Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer.

Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in the 2021-22 tax year. It means couples can reduce the tax they pay by up to £252 a year. Couples can apply any time, backdate their claims for any of the 4 previous tax years and receive a payment of up to £1,220 at a time when they need it most.

Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance, including:

  • 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, or
  • one partner is studying or in education and not earning above their Personal Allowance

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

Marriage Allowance claims are automatically renewed every year.

Latest Blog
07
Dec

Pubs to open longer if UK nations reach Euros semis

In a potentially welcome announced for the hospitality industry in England and Wales,...

Read More
05
Dec

Winter support for pensioners

Pensioners across the country have started to receive up to £600 to help with e...

Read More
04
Dec

Tax Diary December 2023/ January 2024

1 December 2023 – Due date for Corporation Tax payable for the year ended 28 Fe...

Read More
04
Dec

Current State Pension age

The second review of the State Pension age has been published by the Department for W...

Read More