HMRC Offers Marriage Allowance Tax Break for Eligible Couples
HM Revenue and Customs allows married couples and civil partners to transfer unused personal allowances to reduce annual income tax bills by up to £252.
The HM Revenue and Customs (HMRC) provides a Marriage Allowance that enables married couples and civil partners to transfer £1,260 of an unused Personal Allowance to a spouse. This transfer can reduce the higher earner's annual Income Tax bill by up to £252. To qualify, the lower earner must earn under £12,570 and pay no Income Tax, while the higher earner must be a basic-rate taxpayer. In Scotland, the higher earner must fall within the starter, basic, or intermediate tax rate requirements.
Eligible couples can backdate claims to April 6, 2022, which could result in a total payment of £1,260 for those qualifying for every tax year since that date. A deadline of April 5, 2027, exists for including the 2022/23 tax year in these backdated claims.
While the Government of the United Kingdom recently closed a consultation titled 'A Fairer End to Relationships' to evaluate new financial rights for cohabiting couples, the Marriage Allowance remains restricted to married couples and civil partners. Ross Taylor, a tax specialist at EmpowerRD, has urged eligible couples to apply online, noting that the allowance renews automatically once established.
