Marriage Allowance – frequently asked questions
Posted on 10th August 2023
The Marriage Allowance lets couples transfer some unused personal tax allowance to their partner. It usually increases each year on 6th April, along with the personal tax allowance.
Here are some questions people often ask us.
What is the Married Couple’s Allowance?
The Married Couple’s Allowance is different to the Marriage Allowance. The Married Couple’s Allowance only applies when at least one partner was born before 6th April 1935.
Before the Civil Partnerships Act came into effect on 5th December 2005, the allowance was based on a husband’s income. For marriages and partnerships after that date the Married Couple’s Allowance uses the highest earner’s income. It reduces your tax liability on a sliding scale, depending on your earnings. In the 2023/24 tax year, your tax bill could reduce by between £401 and £1037.50.
You can use the Married Couple’s Allowance calculator to work out how this would affect you. You claim the allowance on your Self-Assessment tax return.
What can I claim under the Marriage Allowance?
The Marriage Allowance applies to people born since 6th April 1935 who are married or in a civil partnership. The lowest earner can transfer up to £1,260 of their unused personal tax allowance to their partner. This is just over 10% of the 2023/24 £12,570 income allowed before you pay tax. The transfer arrangement reduces your partner’s tax by up to £252 for the year. If your income is above £11,310 you can only transfer your remaining unused tax allowance.
Who qualifies for the Marriage Allowance?
You can qualify for the Marriage Allowance if you:
are married or in a civil partnership and don’t receive the Married Couple’s Allowance
one partner earns less than their annual personal allowance and isn’t paying income tax
the other partner is paying basic rate tax on their income and not paying higher or additional tax rates.
For the 2023/24 tax year in England, the higher earning partner can have taxable income up to £50,270. Their tax bill is reduced by 20% of the transferred allowance up to £252. This is different from the personal tax allowance which is deducted from your income before tax is worked out.
You can use the Marriage Allowance calculator to see what difference this would make to you.
Does my tax code change?
If you’re the partner receiving the Marriage Allowance your tax code usually changes to ‘M’.
If you transfer your personal tax allowance and you’re employed, your tax code changes to ‘N’.
How do I apply for the Marriage Allowance?
As the lower earning partner, you apply via the government website, www.gov.uk.
If you don’t already have a Government Gateway ID and password, you must register.
You’ll need both your own and your partner’s National Insurance numbers and identification, like a passport.
Alternatively, you can apply by post using form MATCF. You can download the form to complete on-screen and then print and return it by post.
Can I backdate my Marriage Allowance claim?
The tax thresholds change each year. You’ll need to check you met the requirements to claim for previous years. If you qualify you can backdate claims for up to four years.
What happens to the Marriage Allowance if my partner dies?
If you have transferred some of your unused personal tax allowance and your partner dies their estate still receives it. Your personal allowance goes back to the standard amount. Unused personal allowance transferred to you before your partner dies remains until the end of the tax year.
Share this post: