Marriage Allowance Tax Break

March 22, 2021

The marriage allowance is available to qualifying married couples as well as those in civil partnerships where one spouse or civil partner is a non taxpayer - this means they have income less than their personal allowance (currently £12,500). The allowance enables the lower earning partner to transfer up to £1,250 of their personal tax-free allowance to their spouse or civil partner. The marriage allowance may only be used when the recipient partner of the transfer (the higher earning partner) doesn’t pay more than the basic 20% rate of Income Tax, usually this means their income is between £12,500 and £50,000 in 2020-21.

If you meet the eligibility criteria and have not yet claimed the allowance, then you are able to backdate your claim. If you claim now you can backdate your claim for up to four years as well as claim for the current tax year. This could result in a total tax break of up to £1,188 for 2016-17, 2017-18, 2018-19, 2019-20 as well as the current 2020-21 tax year. The deadline for backdating an eligible claim to 2016-17 is 5 April 2021.

If you would like any further information or help with claiming the marriage allowance then please get on touch.

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