What is Marriage Allowance?
Marriage Allowance allows one spouse or civil partner to transfer £1,260 of their personal allowance to the other. The recipient gets an extra £1,260 of income tax-free, saving £252 per year. It is available to married couples and civil partners where one person earns below the personal allowance and the other is a basic rate taxpayer.
Can I backdate the claim?
Yes. You can backdate your Marriage Allowance claim for up to 4 previous tax years, potentially receiving a lump sum payment of up to £1,008 in addition to the current year's saving. The claim is made online through HMRC and typically takes around 2 months to process.
Does it affect the lower earner?
The lower earner gives up £1,260 of personal allowance. If their income is below the personal allowance, which it usually is for this claim to be beneficial, this has no tax impact on them. If they later earn more, the arrangement can be cancelled.