Martin Lewis has revealed how a simple HMRC rule could help eligible couples across the UK, with 2.1 million failing to claim. A viewer of The Martin Lewis Money Show Live shared how he and his wife received a substantial payout from HMRC thanks to a special allowance.
How the Marriage Tax Allowance Works
Mr Lewis explained on his ITV programme that married couples can access financial assistance if one partner is not in employment. The scheme effectively delivers a £1,260 tax saving for married couples, provided one of you is aged under 90.
In a recent post on X, the show highlighted one couple who benefited from the scheme. The viewer said: "We were watching the show and heard Martin talking about transferring the spouse's tax allowance. I had retired on medical grounds so I was not paying tax. Following the show, I went on 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 about 4 years of back tax, which was about £1,000. We used that to have a rather nice holiday in Cornwall."
Who Is Eligible?
Approximately 2.1 million people are missing out on claiming the funds. Those who have not previously applied could be entitled to £1,260 as a lump sum, backdated for four years plus the current year. One partner must be a non-taxpayer, enabling them to transfer the portion of their personal allowance they are not utilising.
Mr Lewis stated: "One of you needs to be a non-taxpayer, so you are not earning your full personal allowance. The other partner must be paying no more than the 20 per cent tax rate. You have to be married or civil partners. Each of you have your £12,570 personal allowance. The non-taxpayer can apply to Gov.uk to move 10% of their tax-free allowance across to the basic rate taxpayer."
This arrangement leaves the non-taxpayer with an allowance of £11,310 while their partner benefits from a combined allowance of £13,830. The gain is £252 a year. For past years, HMRC sends a cheque or bank transfer.
You can apply for marriage tax allowance on the gov.uk website.
