Marriage Allowance claim

HMRC published the following press release on Valentine’s Day 2021.

HMRC is encouraging married couples and people in civil partnerships to sign up for a tax break this year.

Marriage Allowance offers individuals the chance to transfer part of their Personal Allowance to their husband, wife or civil partner, which could reduce their tax by up to £250 a year. For some couples, this could mean a backdated payment of up to four years of claims which could be as much as £1,188.

It is free to apply for Marriage Allowance and HMRC is encouraging customers to claim directly through its online portal to ensure they receive 100% of the tax relief they are eligible for.

For the tax year 2020-21, the Marriage Allowance lets people earning £12,500 or less transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher and they are a basic rate taxpayer. This will reduce their tax by up to £250 for the 2020-21 tax year. Claims can also be backdated to April 2016 until 5 April 2021. After 6 April 2021, couples will only be able to claim back to the 2017-18 tax year.

The same criteria apply to married couples and civil partnerships in Scotland, except their partner must pay Income Tax at the starter, basic or intermediate rates between £12,501 and £43,430.

The Personal Allowance rate for the 2021-22 tax year is increasing to £12,570.

To claim, search the GOV.UK website for Marriage Allowance.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.

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