2.1 Million Couples Are Missing Free £252/Year from HMRC — Do You Qualify?

The Marriage Allowance is one of the least-used tax reliefs in the UK. HMRC estimates that over 2.1 million eligible couples fail to claim it every year, each missing out on a free £252 reduction in their tax bill — and potentially up to £1,260 backdated over 5 years.

What Is Marriage Allowance?

Marriage Allowance allows a lower-earning spouse or civil partner to transfer 10% of their Personal Allowance (£1,260 in 2026/27) to the higher-earning partner. The higher earner then receives a £252 reduction in their annual income tax bill (£1,260 × 20%).

Who Qualifies?

• You must be married or in a civil partnership (not just cohabiting)
• The lower earner must earn less than £12,570 (their full personal allowance is not used)
• The higher earner must be a basic rate taxpayer (earning £12,571–£50,270)
• Neither of you can be a Scottish taxpayer paying income tax at the Scottish Starter or Basic Rate on any income (this affects eligibility)

The 5-Year Backdating Opportunity

Marriage Allowance can be backdated 4 tax years. In 2026/27, this means you can claim for 2022/23, 2023/24, 2024/25, 2025/26, and 2026/27 — a total of up to £1,260 in backdated refunds plus £252 going forward.

How to Claim

1. The lower earner applies at gov.uk/apply-marriage-allowance
2. Sign in with a Government Gateway account (or create one — it takes 10 minutes)
3. HMRC updates the higher earner's tax code (usually adding an 'M' suffix to reflect the transfer)
4. The tax saving appears in the higher earner's monthly payslip

Frequently Asked Questions

Does it matter who earns more?

Yes — the transfer goes from the lower earner to the higher earner. If your circumstances change (e.g., the lower earner returns to work and now earns more), you should cancel the transfer immediately. Failing to do so can result in you owing money to HMRC.

Can retirees claim Marriage Allowance?

Yes. If one partner's pension or other income is below £12,570, and the other is a basic rate taxpayer, Marriage Allowance applies exactly as it does for employed couples.

Check your eligibility and calculate your saving with our Marriage Allowance Calculator.