Every year thousands of taxpayers miss out on a helpful tax relief that could help them save hundreds of pounds – the Marriage Allowance.
When a partner transfers their Marriage Allowance, their tax bill can be lowered by up to £252 in the tax year, which runs from 6 April to 5 April of the following year.
You may qualify for Marriage Allowance if you’re married or in a civil partnership, not receiving Married Couple’s Allowance, and earning less than your Personal Allowance, which is typically less than £12,570 for 2022/23.
Additionally, your partner should pay tax on their income at the basic rate, which typically means their income ranges from £12,571 to £50,270 before receiving the Marriage Allowance.
Marriage Allowance increases the higher-earning partner’s basic Personal Allowance by £1,260.
When a partner receives this allowance, 20 per cent of the transferred amount is given as a reduction in their tax bill, which is different from Personal Allowance that is deducted from taxable income before tax calculation.
You can claim for up to four years previously if you haven’t claimed in the past and you meet the criteria for each year you apply for.
You can apply online for this tax year, or if this relief is no longer beneficial, make the claim to stop it by clicking here.
It is important to note that the threshold for non-taxpayers and basic rate taxpayers may vary depending on the tax year you are making the claim for.
You may be eligible for a more generous allowance known as the Married Couple’s Allowance, if you or you partner was born before 6 April 1935.
To qualify for the allowance in the 2022/23 tax year, at least one member of the couple must be 88 years old or more on 5 April 2023.