Martin Lewis has urged married couples and those in civil partnerships to check if they are eligible for the Marriage Tax Allowance, which could save them up to £1,260 in tax-free income each year. Despite the scheme being designed to benefit couples, around two million eligible couples have not taken advantage of it.
The allowance allows a non-taxpaying partner to transfer 10% of their personal allowance to their spouse, increasing the tax-paying partner's tax-free income by £1,260. This results in an annual saving of £252. Couples can backdate claims for up to four years, potentially receiving a reimbursement of up to £1,006.
To qualify, one partner must be a non-taxpayer, earning less than the personal allowance of £12,570 per year. The other partner must be a basic-rate taxpayer, with taxable income between £12,571 and £50,270. The non-taxpayer must apply via Gov.uk to transfer the allowance.
Martin Lewis explained on his ITV Money Show that even part-time workers or volunteers who do not pay income tax are considered non-taxpayers. He emphasised that the non-taxpayer must be the one to apply, saying: 'Clearly, you can't apply to take someone's personal allowance.'
