Marriage Allowance

Posted by karengray - July 12, 2017 9:50 am Marriage Allowance – what you need to know

What is the Marriage Allowance?

The Marriage Allowance is available for married couples and civil partners from the 2015/16 tax year. If you, or your partner, have earnings below the personal allowance (£11,000 for 2016/17) and the second partner is a basic rate tax payer you may be able to claim the Marriage Allowance.

Transferring your personal allowance

The Marriage Allowance allows a partner to transfer up to 10% of their personal allowance to their higher earning spouse who, in turn, receives a tax reducer of 20% of the amount transferred. For the 2016/17 tax year, this is a maximum of £220 tax saved.

The Marriage Allowance must be claimed online by the lower earning spouse on the following website: If you could have benefitted from the Marriage Allowance in the 2015/16 tax year, a backdated application can be made when applying for the current year.

How HMRC handles the Marriage Allowance

HMRC adjusts for the Marriage Allowance by changing your tax code if you are employed or are receiving a pension. If you are self-employed, the adjustment is made when you send in your Self Assessment tax return.

Once a claim for the Marriage Allowance has been made, there is no need to make the claim in future years. The personal allowance will automatically transfer until either spouse cancels the transfer. You must let HMRC know if there is a change in circumstance such as divorce, death or change in income.

You can find more information on the following website, or contacting your local MFW office: