Marriage Allowance (MA) was introduced in April 2015 to recognise the importance of marriage and civil partnerships in the tax system, and support those on low incomes across the UK by helping them keep more of the money they earn. It allows an individual earning £0 - £12,500 to transfer 10% of their personal tax allowance to their spouse/civil partner who is earning £12,501 and above (maximum £43,430 in Scotland and £50,000 in the rest of the UK). This means that the spouse/civil partner could save up to £250 per annum from the year the claim is approved and they will get a new tax code to reflect this. If they are eligible to backdate it to when the policy was introduced they could get a payment of up to £900, see table below for amounts.
Tax year Marriage Allowance amount
The individual transferring 10% of their allowance to their partner is referred to as the Transferor and will have to make the application on behalf of the couple.
Applications can be made through their personal tax account, via GOV.UK website or by telephone.
The current take-up rate of Marriage Allowance is 42% and we would like to encourage more eligible couples to claim.
We would like Local Authority residents to know that:
- if their claim is successful, they will get a new tax code to reflect their marriage allowance. This tax code remains in place until they inform HMRC of a change in circumstance
- if they claim before April 2020, they can backdate their claim for up to four years if they are eligible – They may lose out if they make a claim after April 2020,
- if they are eligible for a backdated claim, they will get the amount of tax savings paid to them in a lump sum (usually via a cheque in the mail), they may still be eligible to make a backdated claim even if their circumstances have recently changed. For example,
- if they’ve recently started earning and want to claim for the previous years when they were not earning,
- they should visit gov.uk to check eligibility, calculate how much tax they could save and apply online to HMRC directly to receive 100% of their benefits if they are eligible for Marriage Allowance