If you’re married or in a civil partnership and one of you earns significantly less than the other, you could be missing out on up to £252 in tax savings this year. This is thanks to the Marriage Allowance—a tax benefit designed to help couples make the most of their unused personal allowance. Here’s everything you need to know in 2025/26, from eligibility and mechanics to claiming and withdrawing.
What is the Marriage Allowance?
The Marriage Allowance (also known as the Transferable Tax Allowance) allows a lower-earning spouse or civil partner to transfer a portion of their unused Personal Allowance to their partner. This doesn’t reduce their own tax bill directly—instead, it reduces their partner’s tax liability through a tax credit of £252 (for 2025/26).
The allowance is £1,260 of the lower earner’s Personal Allowance, and the recipient receives a flat tax reducer rather than an increase in their own allowance.
It’s important to distinguish this from the Married Couple’s Allowance, which applies only if one partner was born before 6 April 1935.
Who is Eligible?
To qualify for the Marriage Allowance in 2025/26, you and your partner must meet all the following conditions:
You are married or in a civil partnership
Neither of you pays higher-rate tax (above the 20% basic rate in England or the intermediate rate in Scotland)
The donor earns less than the Personal Allowance threshold (£12,570)
The recipient earns enough to pay at least £252 in income tax
If either partner has taxable income above £50,270 (ignoring savings and dividend allowances), they will not qualify.
How Does It Work?
The Marriage Allowance works by:
Reducing the Personal Allowance of the donor by £1,260
Applying a tax credit of £252 to the recipient’s tax bill
This tax credit is applied through:
PAYE code adjustments for employed individuals (the donor’s code gains an “N”, and the recipient’s gains an “M”)
A Self Assessment tax return, if either partner files one
Note: The recipient does not get a refund if their tax liability is less than £252—they just benefit up to the limit of what they owe.
Example: How Marriage Allowance Saves Tax
Let’s say:
Marjorie earns £9,000 (well below the personal allowance)
Carl earns £21,500
Both are entitled to the full personal allowance (£12,570), but Marjorie isn’t using £3,570 of hers. She can transfer £1,260 to Carl, reducing his tax bill by £252.
Without the transfer:
Carl pays tax on £8,930 → Tax due: £1,786
With Marriage Allowance:
He receives a tax credit of £252 → Final tax: £1,534
When and How to Claim
You can claim Marriage Allowance for the current tax year at any time. Once the claim is made, it rolls over each year until cancelled or ineligible.
Claiming for 2025/26 can be done until 5 April 2030
If your situation changes (e.g., earnings, separation), you must update HMRC
Claims can also be backdated up to four years, potentially resulting in tax refunds
You can apply via:
Phone (via HMRC)
Paper form MATCF
Withdrawing a Claim
Only the donor (who gave up part of their allowance) can cancel the claim.
If withdrawn in August 2025, it remains in place until 5 April 2026
If the couple separates during that year, it ends immediately
Marriage Allowance cannot be claimed for tax years after divorce or dissolution
When Marriage Allowance Might Not Help
The Marriage Allowance is not always beneficial, especially when both incomes are close to the personal allowance limit. For example:
Stevie earns £11,900
Luke earns £12,950
If they don’t claim, their combined tax is £76.
If they do claim, Stevie’s tax increases to £118 while Luke’s drops to £0, making the total tax bill £118—£42 more than before.
If your income is between £11,310 and £12,570, be cautious and check the numbers before claiming.
Common FAQs
1. Can I claim if my partner is deceased?
Yes, it can be claimed after death, but only for years when both were alive and eligible.
2. Does the transfer change my personal allowance permanently?
No—it only changes it while the claim is active.
3. Can I claim if I’m self-employed or retired?
Yes. The scheme applies regardless of employment status, as long as the income conditions are met.
4. Will I get a refund if I don’t use the full £252 credit?
No. It’s a tax reducer, not a payment. Unused credit is not repayable.
Conclusion: A Simple Step with Real Savings
If your partner earns less than the personal allowance and you’re within the basic rate band, the Marriage Allowance can provide an easy £252 annual tax saving with almost no downside.
But it’s important to:
Confirm eligibility annually
Reassess if incomes change
Withdraw the claim if it becomes disadvantageous
With claims stretching back four years and an easy online application, it’s worth checking if you or someone you know is missing out.
Want to make the most of your tax allowances? Use our UK Self Assessment Calculator 2025 to instantly check if you’re eligible for Marriage Allowance and see your potential savings in real-time.