Marriage Allowance 2026/27: Save £252/Year and Claim Up to £1,260 Back

Marriage Allowance 2026/27: The Free £252 Tax Saving

Marriage Allowance is one of the simplest and most underused tax savings available to UK couples. It allows the lower-earning partner to transfer £1,260 of their unused Personal Allowance to the higher earner, saving £252/year in income tax. Yet millions of eligible couples have never claimed it.

What Is Marriage Allowance?

The Personal Allowance (£12,570 in 2026/27) is the amount of income on which you pay no tax. If one partner earns below £12,570, they are not using their full allowance. Marriage Allowance allows them to transfer £1,260 of that unused allowance to the higher-earning partner.

The receiving partner gets a 20% tax reduction on the transferred amount: £1,260 × 20% = £252/year tax saved

Who Qualifies?

All three conditions must be met:

1. Married or in a civil partnership — cohabiting partners who are not married cannot claim
2. Lower earner has income below £12,570 — this includes total income from all sources (salary, self-employment, rental, savings interest above PSA)
3. Higher earner is a basic rate taxpayer (income £12,571–£50,270) — if the higher earner pays higher rate tax (40%), they do not qualify for Marriage Allowance (but may qualify for Married Couple's Allowance in specific circumstances)

Income types that count for the lower earner:

• Salary or wages
• Self-employment profits
• Rental income above £1,000
• Bank interest above the Personal Savings Allowance
• Pension income

Does NOT count: Dividends within the dividend allowance (£500).

How Much Can You Claim?

You can claim up to 5 years back — potentially £1,260 if you have been eligible for all five years and have never previously claimed.

The claim is made by the lower earner, not the higher earner.

How to Claim

Online: gov.uk/apply-marriage-allowance — takes approximately 10 minutes. You need:

• Both partners' National Insurance numbers
• The lower earner's Government Gateway login (or create one)

Once applied, HMRC adjusts the higher earner's tax code (they receive a code like 1383L, reflecting the extra £1,260 allowance) and calculates a refund for prior years.

Backdated refund: Prior year refunds are typically paid within 5 working days by bank transfer once the claim is processed.

Common Scenarios

Scenario 1: One earner, one at home Classic qualifying situation. The non-working partner has no income — easily below £12,570. Can claim immediately.

Scenario 2: Part-time worker earning £10,000 Below £12,570. All three conditions likely met. Claim available.

Scenario 3: Retired couple (one with small pension) If one partner's pension income is below £12,570 and the other is a basic rate taxpayer, Marriage Allowance applies to pensioner couples too.

Scenario 4: Self-employed partner with variable profits If profits are below £12,570 in a given year, the allowance applies for that year. Can be applied year-by-year.

What Happens if Circumstances Change?

If the lower earner's income rises above £12,570 during the year, notify HMRC. The allowance is cancelled and the higher earner's code reverts. Any overpaid relief for the year must be repaid.

The allowance renews automatically each April until cancelled — no need to reapply each year.

Married Couple's Allowance (Different Scheme)

A different scheme — Married Couple's Allowance — is available if one partner was born before 6 April 1935. This is a more generous relief worth up to £1,037.50/year but applies only to that specific older demographic. Check eligibility at gov.uk/married-couples-allowance.

Frequently Asked Questions

Q: Can I claim if my partner is self-employed with variable profits? Yes — for any tax year in which their total income was below £12,570, the allowance applies. If profits vary year-to-year, you may be able to claim for some years retrospectively.

Q: I applied and my tax code changed to 1383L — is that correct? Yes. 1383L = £13,830 tax-free (standard £12,570 + £1,260 transferred allowance). This is correct and confirms the allowance is being applied.

Q: My partner is the lower earner — do they apply or do I? The lower earner applies to transfer their allowance to you. You, as the higher earner, do not initiate the application. HMRC adjusts your code automatically following the lower earner's application.

Q: We separated mid-year — do we need to repay anything? If you separate and the lower earner's income increases (e.g., returns to full-time work), the allowance should be cancelled from that point. If it was applied for a full year in which you were together for only part of the year, HMRC will apportion accordingly.

Q: We've been married 8 years and never claimed — can we still backdate? Only up to 5 complete tax years back. You cannot go further than 2022/23 when claiming in 2026/27. Maximum backdated claim now available: £1,260 (5 × £252).