Marriage tax allowance: what is it and how does it work?

Marriage tax allowance offers a couple that is married or in a civil partnership the opportunity to claim tax relief if one spouse earns less than the standard personal allowance.

Here’s everything you need to know about marriage tax allowance.

What is the marriage tax allowance? 

The marriage allowance is a tax perk for couples who are married or in a civil partnership, where the lower earner can transfer £1,260 of their personal allowance to their partner.  

The higher-earning spouse (a basic-rate taxpayer) will receive a tax credit for the amount of personal allowance transferred to them. This will be deducted from the amount of tax they would usually pay.  

To be eligible: 

• Before tax, the lower-earning partner’s income must be less than the standard personal allowance, which is £12,570 in the tax year 2024/25.
• The higher-earning partner’s salary must fall between the threshold for the basic rate of income tax - between £12,571 and £50,270.

However, the Scottish income tax has different bands and rates. 

If you live in Scotland, you can claim marriage allowance if the higher-earning partner's salary falls between the Scottish starter, basic rate or intermediate rate of tax.

Basically, the higher-earning partner’s salary needs to be less than £43,662. 

How does marriage allowance work? 

To benefit from the marriage allowance, the lower earner needs to apply to HMRC to request their unused personal allowance to be transferred to their spouse. 

In the tax year 2024/25, those earning less than the standard personal allowance (£12,570) can transfer a maximum of £1,260 to their partner’s allowance.

However, note that if you do decide to transfer any of your unused personal allowance, it must all be transferred to your spouse.

Do I qualify for marriage tax allowance? 

You will qualify for the marriage allowance if all the following apply:  

• You’re married or in a civil partnership
• You were both born on or after 6 April 1935
• One of you is a basic 20% rate taxpayer
• The other partner doesn't pay income tax or their income is below the personal allowance

How do I apply for marriage tax allowance? 

There are a few things you will need before claiming the marriage allowance tax relief. 

First and foremost, you will need your national insurance (NI) number and your partner’s NI number too. 

You will need to prove your identity, which can be done by using any two of the following: 

• Your P60
• One of your three most recent payslips
• A valid UK passport
• Information held on your credit file (such as loans, credit cards or mortgages)
• Details from your self-assessment tax return (in the last 3 years) 
• A driving licence issued by the DVLA or DVA

The quickest way to apply for the marriage allowance is online. You’ll get an email confirming your application within 24 hours. 

But remember, if you want to apply, the person who earns the least should make the claim. 

How much is the marriage tax allowance? 

The marriage tax allowance allows you to transfer £1,260 of your personal allowance to your marital or civil partner.

This could reduce your spouse’s tax by up to £252 for that year.  

Is the marriage allowance taxable? 

Marriage allowance is a tax relief. It offers couples a way of paying less tax if one partner is not using any (or all) of their personal allowance.  

How does the marriage allowance get paid? 

You wouldn’t receive your marriage allowance in your bank account, as this is a tax relief for a partner who pays the basic tax rate. 

This means the higher-earning partner will be taxed on a smaller proportion of their salary, so they will receive extra money when they are paid.

The only instance you may receive a cheque in the post for your tax relief is if you’ve applied for backdated marriage allowance from previous years.  

Can self-employed people claim marriage allowance? 

As long as one partner earns less than £12,570 and the other earns between £12,571 and £50,270 per year, self-employed people can also claim marriage allowance.

If the recipient partner files a self-assessment, the marriage allowance tax relief will reduce their self-assessment bill.  

Can you claim marriage allowance while on maternity leave? 

If your income falls below £12,570 during your maternity leave, you can apply to transfer 10% of your personal allowance to your spouse. 

Can you backdate the marriage allowance?  

Your marriage allowance claim can be backdated for up to four years. 

If your partner has died since 5 April 2020, it is possible to backdate your marriage allowance claim to include any eligible tax year between this period. Phone the income tax helpline for more information.

How do I cancel my marriage allowance? 

If you need to cancel a marriage allowance transfer, you should contact HMRC as soon as possible. This can be done online or by calling 0300 200 3300. 

However, if a marriage ends through divorce or death, the marriage allowance will automatically be cancelled. 

Why has my tax code changed?  

Usually, using the marriage allowance tax relief will see the recipient partner’s tax code change to ‘M’, demonstrating they are receiving marriage allowance from their spouse.  

Similarly, if the partner transferring their personal allowance is in employment, their tax code will change to ‘N’, showing they have chosen to use their marriage allowance.  

How long does marriage allowance take to process or receive? 

It can take up to two months for any marriage allowance claims to go through, as HMRC needs to process each claimant's tax code in order for the refund to be issued. 

Get expert financial advice

The marriage tax allowance is a unique tax provision that allows you to transfer up to £1,260 of your personal allowance to your civil partner or spouse.

Doing so could reduce your partner’s owed tax by up to £252 per tax year.

Unbiased will connect you with an experienced financial adviser who can help you and your partner to understand your eligibility for the marriage tax allowance and make optimum use of this unique tax provision.