The marriage allowance allows you transfer £1,100 of your Personal Allowance to your husband, wife or civil partner – if they earn more than you.
This reduces their tax by up to £220 in the tax year (6 April to 5 April the next year).
In order to benefit as a couple, you (as the lower earner) must have an income of £11,000 or less.
If you are eligible for marriage allowance in the 2015/2016 tax year, you can backdate your claim to 6 April 2015 and reduce the tax paid by up to £432.
Who can apply?
You can get marriage allowance if all the following apply:
- You are married or in a civil partnership
- You don’t earn anything, or your income is under £11,000
- Your Partner’s income is between £11,001 and £43,000
You can also apply for marriage allowance if you or your partner:
- Are currently receiving a pension
- Live abroad – as long as you get a Personal Allowance
If you or your Partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead.
If you would like to discuss this please get in touch.
Paula McIntosh, Administration