Marriage Tax Allowance: What Does It Mean?

Stimulus Check Marriage Tax Allowance

If you are married or in a legal partnership and under the age of 88, you may be eligible for a £1,260 tax relief known as the marriage tax allowance, which around 2.1 million eligible couples do not get. It is really simple to apply for and benefit from these tax savings. This article explains who is qualified and how to file a claim. If the other person or civil spouse earns more than you, you can transfer £1,260 of your individual exemption (the sum that you can make tax-free each tax year) to them.

If your claim is approved, it will reduce the greater earner’s tax burden for the tax year, however you may additionally backdate your payment if you are qualified. 

Marriage Tax Allowance Claim Yours Now

Only those with the following circumstances will be eligible to apply for Marriage Tax Allowance:

You must be married or in a civil partnership to apply. Living together isn’t enough. One of you must not be a taxpayer. This normally indicates that you will earn less than the £12,570 personal allowance between April 6, 2023 and April 5, 2024. To receive the full benefit, the non-taxpayer must earn £11,310 or less.

The other partner must be a basic 20% taxpayer. This implies that you would generally need to earn less than £50,270, or £43,662 if you live in Scotland. This provision is not available to higher or additional rate taxpayers.

You both have to be born on or after April 6, 1935. If not, there is another tax benefit.  The marriage tax allowance reduces the amount of tax that your spouse or civil partner must pay.

However, while this is the effect of moving a portion of your individual allowance to your partner, technically, this transfer does not raise the level at which they would have to begin paying a greater rate of tax, nor does it raise their own personal allowance.