{Couples} married or in civil partnerships can now switch £1,260 of 1 associate’s private allowance to the upper earner, successfully boosting the family’s tax-free threshold to £13,830 for these with mixed earnings beneath £50,270.
What’s the Marriage Allowance?
The Marriage Allowance permits the lower-earning associate, who doesn’t pay revenue tax, to cross £1,260 of their private allowance to their partner or civil associate. This addition reduces the upper earner’s taxable revenue.
Eligibility requires one associate to earn under the usual private allowance of £12,570, classifying them as a non-taxpayer. The recipient should pay the essential price of 20% tax, that means their revenue stays beneath £50,270.
Tax Financial savings and Backdating Choices
Eligible {couples} save as much as £252 on their 2025-26 tax invoice. Claims may apply retroactively for the previous 4 tax years if standards have been met throughout these durations.
Martin Lewis, founding father of MoneySavingExpert, explains: “Marriage Tax Allowance reduces the tax your partner or civil associate pays by transferring a part of your private allowance. Nonetheless, it doesn’t elevate the edge for higher-rate tax or increase their very own allowance. These incomes simply over £50,270 stay ineligible, as the essential price restrict is strict.”
Married Couple’s Allowance for Older Companions
Individually, the Married Couple’s Allowance gives as much as 10% tax aid however applies solely to {couples} the place not less than one associate was born earlier than 5 April 1935.
