2.1 million couples are missing £252/year from HMRC — do you qualify for Marriage Allowance?

According to Money Saving Expert and HMRC data, approximately 2.1 million eligible couples have never claimed Marriage Allowance. That is free money sitting unclaimed — not a loophole, not a grey area, just a straightforward government scheme that most people do not know exists.

What is Marriage Allowance?

Marriage Allowance (introduced in April 2015) allows one partner in a married couple or civil partnership to transfer £1,260 of their unused Personal Allowance to their partner. The partner receiving the transfer pays 20% less tax on that £1,260, which saves exactly £252 per year.

To qualify, three things must be true:

• You must be married or in a civil partnership (cohabiting partners cannot claim)
• The lower-earning partner must earn below the Personal Allowance (i.e., below £12,570 per year)
• The higher-earning partner must be a basic-rate taxpayer (earning between £12,571 and £50,270 per year)

The backdating opportunity: up to £1,008 as a lump sum

Here is where it gets even more interesting. If you have been eligible for Marriage Allowance since it launched in 2015 but never claimed, you can backdate the claim for up to four previous tax years. Each year is worth £252, so four years = £1,008 paid as a single BACS payment.

The four years you can currently backdate are:

• 2022/23 — worth £252
• 2023/24 — worth £252
• 2024/25 — worth £252
• 2025/26 — worth £252

Plus the current 2026/27 year, making a potential total of £1,260 if you claim today and keep receiving it annually.

Who typically qualifies?

The most common situations where Marriage Allowance applies include:

• One partner works part-time and earns below £12,570 (e.g., earns £8,000 a year working 2 days per week)
• One partner is a stay-at-home parent with no income or very low income
• One partner is a carer and does not earn from employment
• One partner is a student with no taxable income
• Retired couples where one partner's pension is below the Personal Allowance (very common — see below)
• One partner works seasonally and earns less than £12,570 in total across the year

Marriage Allowance for retirees

This is one of the most overlooked use cases. Many retired couples assume Marriage Allowance does not apply to them. But if one partner receives a small pension or State Pension below £12,570, and the other partner has pension income in the basic-rate band, the claim is valid.

The full new State Pension in 2026/27 is £241.30 per week (£12,547.60 per year) — just barely under the £12,570 Personal Allowance. If the lower-earning partner's total income is below £12,570, they qualify as the transferring partner.

How to apply in 5 minutes

1. The lower-earning partner must make the application (not the higher earner)
2. Go to gov.uk/apply-marriage-allowance
3. You will need both partners' National Insurance numbers
4. You can apply online using the Government Gateway or by post
5. HMRC adjusts the higher-earning partner's tax code, reducing the tax they pay from the next available payslip
6. Any backdated amounts are paid as a BACS refund, usually within 3–5 working days

Does it affect the Personal Allowance of the lower earner?

Yes — the lower earner's Personal Allowance drops from £12,570 to £11,310 (£12,570 minus the £1,260 transferred). But since they already earn below the Personal Allowance and pay no tax anyway, this makes absolutely no difference to their tax bill. You are giving away an allowance you were not using.

What if income changes during the year?

If the lower-earning partner's income rises above £12,570 during the year (e.g., they take on more work), you should notify HMRC to cancel the transfer. If the higher-earning partner's income rises above £50,270 into the 40% band, they are no longer eligible either. HMRC needs to be told of changes via the Personal Tax Account.

Frequently Asked Questions

We are not married but have been together 20 years — can we claim?

No. Marriage Allowance is only available to married couples and civil partners. Couples who live together without being married or in a civil partnership are not eligible, regardless of how long they have been together. This is a deliberate policy decision to provide a tax benefit to formalised relationships.

My spouse earns £49,000 — can we still claim?

Yes. The higher-earning partner must be in the basic rate band, which means earning up to £50,270 in England and Wales (slightly different thresholds apply in Scotland). At £49,000, your spouse is still a basic-rate taxpayer and you can claim the full £252.

Can we claim if one of us is self-employed?

Yes. The rules apply equally to employed, self-employed, and retired couples. If the lower-earning partner is self-employed and their profits are below £12,570, they can still transfer the allowance. HMRC will take the lower-earning partner's Self Assessment profit figure into account.

We both earn above £12,570 — what about the Married Couple's Allowance?

The Married Couple's Allowance is a different, older relief available to couples where at least one partner was born before 6 April 1935. If both partners earn above the Personal Allowance, Marriage Allowance does not apply, but Married Couple's Allowance might — it is worth checking with HMRC directly. Use the tax code checker to see if your current code already reflects any allowances.

Can I claim if we are separated?

No. If you are separated, even if not yet legally divorced, HMRC treats you as no longer living together and the Marriage Allowance does not apply for periods of separation. You should notify HMRC of any changes to your marital status through your Personal Tax Account.