Marriage Allowance Explained: How Couples Can Save Up to £252 a Year in Tax

Marriage Allowance is one of the simplest tax savings available to UK couples — yet millions of eligible pairs have never claimed it.

If one partner earns below the Personal Allowance and the other pays basic rate tax, you can transfer £1,260 of unused allowance between you, saving up to £252 a year.

For a full picture of all available tax-saving strategies, see our guide on best ways to reduce taxable income in the UK. If salary sacrifice could also help your household, see our salary sacrifice explained guide.

What is Marriage Allowance?

Marriage Allowance lets the lower-earning partner transfer up to £1,260 of their Personal Allowance to the higher-earning partner.

The higher earner's tax bill is then reduced by 20% of £1,260 = £252.

It applies to married couples and civil partners only — not cohabiting couples.

Who qualifies?

You qualify if all of the following apply:

• You are married or in a civil partnership
• One partner's income is below £12,570 (they don't use their full Personal Allowance)
• The other partner pays income tax at the basic rate (income between £12,571 and £50,270)

How much can you save?

You can also backdate your claim up to 4 tax years, meaning couples who've never claimed could receive a lump sum of up to £1,008.

How to claim

1. Go to gov.uk/apply-marriage-allowance
2. The lower earner applies — they are transferring their allowance
3. You'll need both partners' National Insurance numbers
4. HMRC adjusts the higher earner's tax code (e.g. from 1257L to 1383M)

The saving is applied automatically through PAYE going forward.

What happens if circumstances change?

If your income changes and you no longer qualify — for example, the lower earner starts earning above £12,570 — you must cancel the transfer. You can do this through your HMRC online account.

HMRC will not automatically cancel it, so it's worth reviewing each tax year.

Marriage Allowance vs salary sacrifice

Marriage Allowance is a fixed saving of up to £252/year. Salary sacrifice, by contrast, scales with your contribution — a higher earner sacrificing £5,000/year saves far more.

The two are not mutually exclusive. If you qualify for both, use both.

A real example: how the saving works in practice

Tom earns £34,000 and his wife Emma earns £9,000 from part-time work. Emma doesn’t use her full Personal Allowance, so she transfers £1,260 of it to Tom.

Tom’s tax code changes from 1257L to 1383M, and the saving is applied automatically through PAYE. Emma’s code changes to 1257N to show she has transferred part of her allowance.

If they have been married for four years and never claimed, they can backdate the full amount — receiving a lump sum refund of up to £1,008 from HMRC.

What this means for you

If you earn £45,000 and your partner earns £8,000, you are eligible right now. Claiming Marriage Allowance saves £252 this year and, if you backdate four years, you receive a lump sum of up to £1,008. The application takes under five minutes at gov.uk.

If you earn £50,000 and use salary sacrifice to reduce your taxable income, you remain a basic rate taxpayer and stay eligible. Without salary sacrifice, a pay rise above £50,270 would make you a higher rate taxpayer and disqualify you.

Marriage Allowance is not a large saving on its own, but combined with salary sacrifice and a correct tax code, it is part of a straightforward package that costs nothing to implement.

Try the TaxCal UK calculator to estimate your take-home pay.

Summary

• Transfer £1,260 of Personal Allowance from the lower to the higher earner
• Saves up to £252/year in income tax
• Only available to married couples and civil partners
• Higher earner must be a basic rate taxpayer
• Backdate up to 4 years for a potential lump sum of £1,008
• Apply online at gov.uk in under 5 minutes

FAQ

Can cohabiting couples claim Marriage Allowance?

No. Marriage Allowance is only available to married couples and civil partners. Cohabiting couples do not qualify.

What if the higher earner gets a pay rise above £50,270?

They become a higher rate taxpayer and the Marriage Allowance eligibility is lost. You must cancel the transfer via your HMRC account to avoid an underpayment.

Can I backdate the claim if we've been married for years?

Yes, up to four tax years. The lump sum refund can be up to £1,008 depending on when you married and when you became eligible.

Does salary sacrifice affect Marriage Allowance eligibility?

Yes, positively. If the higher earner uses salary sacrifice to reduce their taxable income below £50,270, they remain a basic rate taxpayer and stay eligible.