Married couples and civil partners can boost their tax-free Personal Allowance by £252 this tax year through Marriage Tax Allowance, with backdating worth an extra £1,008.
Martin Lewis' Money Saving Expert (MSE) has reminded taxpayers that they can boost their tax-free allowance with HMRC using a fully legal scheme aimed at married couples. Those who are married, or in a legal civil partnership, can claim Marriage Tax Allowance for the new tax year, which started last week.
How the allowance works
The allowance is worth a tax saving of £252 for the year, and it works by allowing a non-taxpayer in the couple to transfer 10% of their tax-free Personal Allowance to their tax-paying partner, as long as the partner is earning less than the £50,270 40% tax bracket. This could be useful, for example, if one of the couple has taken time off for childcare, is a retired state pensioner, or doesn't work enough hours to go over the £12,570 Personal Allowance threshold.
MSE explains: “MARRIED / CIVIL-PARTNERED and not claiming Marriage Tax Allowance? It's worth £252 this tax year.
“If one of you is a non-taxpayer and the other a basic 20% taxpayer, you can transfer tax-free allowances between you, so you pay less tax as a couple.”
Backdating and eligibility
Not only will it land you £252 tax-free cash this year, but it can also be backdated to add another £1,008 if you are eligible to claim it for each of the past four years as well.
MSE adds: “It's worth up to £252 this tax year, but backdate it the full four years allowed and it can be worth a further £1,008. And once you sign up, you get it every year. Yet 100,000s of eligible couples are still missing out - check you're not one of them in Marriage tax allowance.”
MSE explains who can claim: “Your personal allowance is the amount you can earn tax-free each tax year. It takes into account all taxable income, whether that’s a salary, pension or other forms of income – meaning even pensioners drawing a pension may qualify.
“If your claim is successful, it will lower the higher earner's tax bill for the tax year, but you can also backdate your claim if eligible. Yet only certain couples are able to apply:
You need to be married or in a Civil Partnership. Just living together doesn't count. You both must have been born on or after 6 April 1935. If not, there's another perk.
One of you needs to be a non-taxpayer. In the 2026/27 tax year, this means you earn less than the £12,570 personal allowance (though to get the full benefit of Marriage Tax Allowance, you actually need to earn £11,310 or less).
The other partner needs to be a basic 20% rate taxpayer. In the 2026/27 tax year, this means you earn less than £50,270 (or £43,662 if you live in Scotland). Higher or additional-rate taxpayers aren't eligible for this allowance.”
