Yes. If you are married or in a civil partnership, you can transfer part of your tax-free Personal Allowance to your spouse through a scheme called Marriage Allowance. The lower earner gives up £1,260 of their allowance, and HMRC uses it to cut the higher earner’s income tax bill by up to £252 a year. You apply free of charge through GOV.UK, and you can backdate the claim to pick up savings from earlier tax years.
Who Can Transfer the Allowance
Marriage Allowance is built for couples where one person earns below the Personal Allowance and the other is a basic-rate taxpayer. The Personal Allowance is £12,570 and is frozen at that level until at least April 2028.1GOV.UK. Income Tax Rates and Personal Allowances
- You, the transferor, normally need income below £12,570, so part of your allowance is going unused.
- Your partner needs to sit in the basic-rate band: £12,571 to £50,270 in England, Wales, and Northern Ireland. In Scotland, they must pay the starter, basic, or intermediate rate, which usually means income between £12,571 and £43,662.2GOV.UK. Marriage Allowance
- You must be legally married or in a civil partnership. Cohabiting couples do not qualify, however long they have lived together.
If the higher earner pays tax at the higher or additional rate, the couple cannot use Marriage Allowance.2GOV.UK. Marriage Allowance
One boundary to check before applying: if either of you was born before 6 April 1935, the older Married Couple’s Allowance may be worth more. You cannot claim both, so compare first.2GOV.UK. Marriage Allowance
How Much It Is Worth
The transferable amount is £1,260, which is 10 percent of the standard Personal Allowance.3Legislation.gov.uk. Income Tax Act 2007 – Section 55B It does not arrive as cash. HMRC applies the basic rate of 20 percent to that £1,260 and knocks the result — up to £252 — off the higher earner’s tax bill for the year.
The mechanics on each side:
- The transferor’s Personal Allowance drops from £12,570 to £11,310. If you already earn below £11,310, you lose nothing in practice.
- The recipient’s tax-free threshold effectively rises to £13,830, saving them up to £252 in tax that year.
That £252 is annual. Backdating can multiply it, as covered below.
How to Apply
The lower earner is the one who applies. The quickest route is the online service on GOV.UK, where you sign in with a Government Gateway account or set one up. You may need to verify your identity with a passport or driving licence.4GOV.UK. Apply for Marriage Allowance Online
Have both National Insurance numbers to hand — yours and your partner’s. The form is short and confirmation is usually immediate. A paper application by post is available if you cannot use the online service, but it takes longer.4GOV.UK. Apply for Marriage Allowance Online
If you file a Self Assessment tax return, use the Marriage Allowance section of the return rather than the standalone online form. Your partner leaves the equivalent section of their own return blank.5GOV.UK. Marriage Allowance – How to Apply
Do Not Pay a Third Party to Claim
Marriage Allowance is free through GOV.UK. Some companies advertise the claim service and take a percentage of the refund. There is no need to use them. If you search online, check that the link you click goes to gov.uk before entering any details.
How the Saving Actually Reaches You
Once HMRC approves the claim, both partners get new tax codes. The recipient’s code ends in “M” and the transferor’s ends in “N,” with the numbers adjusted so the standard 1257L becomes higher for one of you and lower for the other.6GOV.UK. Tax Codes – What Your Tax Code Means
For anyone on PAYE or drawing a pension, the new code changes the tax taken from each pay packet automatically. It can take up to two months to appear on a payslip. For Self Assessment filers, the reduction is applied when the return is processed.5GOV.UK. Marriage Allowance – How to Apply
After that, the transfer renews every year on its own. You do not need to reapply. It runs until you cancel or your circumstances change.
Backdating for Earlier Years
If you were eligible in earlier tax years but never applied, you can backdate the claim by up to four years. The current window reaches back to the 2021 to 2022 tax year (starting 6 April 2021), and it moves on by one year each April.2GOV.UK. Marriage Allowance
HMRC looks at each year on its own. Both of you must have met the income rules for that specific year. If all four earlier years plus the current one qualify, the combined refund can be more than £1,200. Backdated amounts arrive as a lump sum; the current year’s saving comes through the adjusted tax code.
Backdating is done by post rather than through the standard online service. The paper form handles the earlier years and the current year together.4GOV.UK. Apply for Marriage Allowance Online
When to Cancel
Marriage Allowance keeps running until you stop it. HMRC identifies three situations for cancelling:7GOV.UK. Marriage Allowance – If Your Circumstances Change
- Income changes push you outside the rules — for example, the recipient moves into the higher-rate band or the transferor starts earning above the Personal Allowance.
- The relationship ends through divorce, dissolution, or legal separation.
- Either partner simply wants to stop the transfer.
Timing depends on the reason. Cancellations for income changes or by choice run to the end of the current tax year on 5 April. Where the relationship has ended, the cancellation can be backdated to the start of that tax year on 6 April.7GOV.UK. Marriage Allowance – If Your Circumstances Change
If a Partner Dies
Bereavement has its own rule. If the partner receiving the allowance dies during the tax year, their estate still gets the full tax reduction for that year, and the transferor’s Personal Allowance is restored to the full £12,570 for the same year, so neither side loses out.3Legislation.gov.uk. Income Tax Act 2007 – Section 55B The allowance will not carry over automatically into future years, so the surviving partner does not need to cancel anything.