Married couples and civil partners can legally increase their tax-free Personal Allowance to £13,830 through the Marriage Allowance scheme, which can also be backdated for up to four years. The scheme allows the transfer of £1,260 of unused Personal Allowance between partners, potentially saving up to £252 per year.
How the Marriage Allowance works
The Personal Allowance has been frozen at £12,570 since 2021 and is not set to rise again until 2031. Under the Marriage Allowance, one partner must earn under £12,570 (paying no income tax), while the other must be a basic rate taxpayer earning between £12,570 and £50,270. The lower-earning partner can transfer their unused allowance, increasing their partner's tax-free income to £13,830 annually.
Eligibility and backdating
AJ Bell's Laura Suter said: "It's thought around two million couples are eligible for this tax break but not claiming it, and even those where one half of the couple is retired can claim the tax break." The scheme can be backdated for up to four years, meaning couples could receive a lump sum rebate of up to £1,260. HMRC adjusts tax codes automatically, with any backdated payments sent by cheque.
How to apply
Couples can apply online directly through the government website using National Insurance numbers and ID, but experts warn against scam sites designed to look like official government pages.
