HM Revenue and Customs (HMRC) has confirmed that married couples and civil partners can benefit from the Marriage Allowance, which effectively increases the Personal Allowance of the higher-earning partner to £13,830. The scheme allows one partner who earns less than the Personal Allowance threshold of £12,570 to transfer 10% of their tax-free allowance to the other partner. This move can reduce the couple's annual tax bill by up to £252, and claims can be backdated for up to four tax years, potentially yielding a lump sum of more than £1,000.
How the Marriage Allowance works
Under the Marriage Allowance, the non-taxpaying partner transfers £1,260 of their Personal Allowance to their spouse or civil partner. This reduces the non-taxpayer's allowance to £11,310 while boosting the higher earner's allowance to £13,830. The higher earner must have an income between £12,571 and £50,270 (£43,662 in Scotland) and must pay only the basic 20% tax rate. The scheme is available to couples where one partner is a non-taxpayer—meaning their income is below the Personal Allowance threshold—and the other is a basic-rate taxpayer.
Backdated claims and lump sums
HMRC has highlighted that individuals can backdate their claim for the previous four tax years. This means eligible couples who have not yet claimed could receive a lump sum of up to £1,260—covering the current year plus four previous years at £252 each. According to HMRC, “Marriage Allowance keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year. You can check your eligibility and apply on GOV.UK. Search ‘Marriage Allowance’ to find out more.”
Martin Lewis, the personal finance expert, has also promoted the scheme on his ITV show. He explained that the allowance effectively delivers a £1,260 tax saving for married couples, noting that it applies “provided one of you is aged under 90.” He added: “If somebody isn’t paying income tax, that would qualify them as a non-taxpayer for this relief.”
Real-life example of the benefit
One couple who benefited from the scheme shared their experience on Martin Lewis's show. The couple said: “We were watching the show and we heard Martin talking about transferring the spouse’s tax allowance. I had retired on medical grounds so I was not paying tax and he said that it is possible to transfer a non-taxpaying spouse’s tax allowance to their partner. Following the show, I went on to the gov.uk website and was surprised how easy it was to complete the forms. We are benefiting from about £250 a year in tax allowance. I was able to claim, I think it was about 4 years of back tax, which was about £1,000. And we used that £1,000 to have a rather nice holiday in Cornwall, particularly as it coincided with Hillary recovering from her chemo. If you can save a few pounds here and a few pounds there, it’s money in the pocket.”
Eligibility and application
To qualify, couples must be married or in a civil partnership. One partner must have an income below the Personal Allowance of £12,570, and the higher-earning partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland). Around 2.1 million eligible people are reportedly not claiming the allowance. Applications can be made online via the GOV.UK website by searching for “Marriage Allowance.” HMRC changes the tax code for the current year and sends a cheque or bank transfer for backdated years.
Martin Lewis clarified the mechanics: “The crucial part of this. One of you needs to be a non-taxpayer, so you are not earning your full personal allowance you can earn before you start paying tax on it. Then what happens is this, each of you have your £12,570 personal allowance. That’s the amount you can earn that you don’t pay tax on each year. So the non-taxpayer can apply to Gov.uk to move 10% of their tax-free allowance across to the basic rate taxpayer.”
Tax year breakdown of potential savings
For each tax year, the saving is £252. The breakdown for backdated years is as follows: 2026/27: £252; 2025/26: £252; 2024/25: £252; 2023/24: £252; 2022/23: £252. In Scotland, couples can benefit if the higher earner pays income tax at the starter, basic rate or intermediate rate, which typically means their income is between £12,571 and £43,662.
