What is the marriage allowance and how do I claim it?

Question

Accepted Answer

Here is a comprehensive answer on the Marriage Allowance.

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## Marriage Allowance

### What the law says

**Statutory basis:** The Marriage Allowance is found in **Chapter 3A of Part 3 of the Income Tax Act 2007 (ITA 2007)**, inserted by the Finance Act 2014. It is formally called the "transferable tax allowance for married couples and civil partners."

**What it is:** One spouse or civil partner (the "transferor" / "relinquishing" party) may elect under **s.55C ITA 2007** to reduce their personal allowance. This gives the other party (the "recipient" / "gaining party") a **tax reduction** equal to the basic rate applied to the "transferable amount."

**The transferable amount** is:
- For 2015–16: £1,060
- For 2016–17 onwards: **10% of the personal allowance** for the relevant tax year (rounded up to the nearest £10 if not already a multiple of £10).

**Conditions for the recipient to receive the tax reduction (s.55B ITA 2007):**
1. They are the "gaining party" in an election under s.55C which is in force for the tax year;
2. They are **not liable to tax at a rate above the basic rate** (i.e. not a higher or additional rate taxpayer — this also covers Scottish/Welsh rates);
3. They meet the UK residence requirements (s.56 ITA 2007);
4. Neither party is claiming the **Married Couple's Allowance** (ss.45–46 ITA 2007).

**Conditions for the transferor to make the election (s.55C ITA 2007):**
1. They are married to, or in a civil partnership with, the gaining party for the whole or part of the tax year;
2. They are entitled to a personal allowance under s.35 ITA 2007;
3. Even after the reduction of their personal allowance, they would **not** be liable to tax above the basic rate (i.e. their income is low enough that the transfer does not push them into higher-rate territory — in practice, their income must be below the personal allowance).

**Effect on the transferor:** Their personal allowance is **reduced by the transferable amount** for the tax year.

**Time limit for elections:** An election must be made **no more than 4 years after the end of the tax year** to which it relates. Once made, it automatically continues in subsequent years unless withdrawn or a change of circumstances occurs. An election made after the end of the tax year (i.e. a retrospective claim) applies to that year only and does not carry forward.

**Withdrawal:** Only the person who made the election can withdraw it, and withdrawal generally takes effect from the following tax year.

**Death:** Personal representatives may make an election on behalf of a deceased individual for the tax year of death or an earlier year.

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### HMRC guidance / practice

**Who benefits:** HMRC confirms the transfer is beneficial where one partner has income **below their personal allowance** and the other has income **above their personal allowance but is not a higher-rate taxpayer**.

**How the relief works in practice:** The Marriage Allowance does not increase the recipient's personal allowance — it operates as a **tax reducer** against their total taxable income.

**How to claim:**
- HMRC's **preferred method** is the **online application** via the Marriage Allowance digital service on GOV.UK. The **transferor** (the person giving up 10% of their allowance) makes the application.
- First-time users must verify their identity before accessing the service.
- HMRC will also accept applications **by telephone or letter**, provided the following information is included: the transferor's name and National Insurance Number (NINO), and the recipient's name, NINO and gender.
- Once submitted, both parties' **tax codes are amended** automatically to reflect the transfer.

**Retrospective claims:** Claims can be made for past tax years (up to 4 years back), but the couple must be married or in a civil partnership at the time of application and must have been so for all or part of the year being claimed. Retrospective claims apply to that year only and do not carry forward.

**Scottish taxpayers:** Scottish recipients who fall into the starter rate or intermediate rate are also entitled to the Marriage Allowance. The amount of relief is still calculated at the basic rate.

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**In summary:** For 2024–25, the personal allowance is £12,570, so the transferable amount is £1,260 (10%, rounded up). The recipient receives a tax reduction of up to **£252** (£1,260 × 20%). The transferor must have income below £12,570 and the recipient must be a basic-rate taxpayer.

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