This transferral reduces a partner’s tax by up to £252 in the tax year (6 April to 5 April the next year).
Marriage Allowance is sometimes referred to as the Marriage Tax Allowance.
You might qualify for Marriage Allowance if:
- you’re married, or in a civil partnership and are not in receipt of Married Couple’s Allowance
- you do not pay income tax or you earn less than your Personal Allowance so are not liable to tax. This will usually mean an income of less than £12,570 for 2021-22.
- your partner pays tax on their income at the basic rate so is not liable to tax at the higher or additional rates. This will usually mean your partner ihas an income between £12,571 and £50,270 before they receive the Marriage Allowance. If you’re in Scotland, your partner must pay the starter, basic or intermediate rate, which usually means their income is between £12,571 and £43,662.
Marriage Allowance means the partner who earns more will get £1,260 added to their basic Personal Allowance.
Of the amount of money transferred to a partner as part of Marriage Allowance – 20% is given as a reduction in their tax bill. This is different from Personal Allowance – which is deducted from taxable income before tax is worked out.
Here’s an example – although this won't apply if you're in Scotland as the income tax bands there are different.
If you earn £30,000 a year, you’re a basic rate taxpayer. If your partner earns £8,000 a year, they’re a non-taxpayer. This means your household could be £252 better off: