Marriage Allowance: The Free £252 Tax Saving Millions Are Missing
By TaxHelper Editorial · Last updated 11/06/2026
HMRC estimates that around 2.4 million eligible couples in the UK have never claimed Marriage Allowance — a straightforward transfer that saves up to £252 per year in income tax and requires no ongoing administration once set up. If you or your partner earns below the Personal Allowance and the other pays basic-rate tax, read this.
What Is Marriage Allowance?
Marriage Allowance is a government scheme that allows the lower-earning partner in a married couple or civil partnership to transfer up to £1,260 of their unused Personal Allowance to their partner. Because the receiving partner pays 20% basic-rate tax, this reduces their tax bill by up to £252 per year (20% of £1,260).
The allowance is not means-tested and does not require a tax return. It is a simple online claim that HMRC processes automatically and applies through both partners' tax codes.
Who Qualifies?
To qualify for Marriage Allowance in 2026/27, you must meet all of the following conditions:
- You are married or in a civil partnership (cohabiting couples do not qualify)
- The transferring partner's income is below £12,570 — they must have unused Personal Allowance to give away
- The receiving partner is a basic-rate taxpayer — their income is between £12,571 and £50,270
- Neither partner pays income tax at the higher or additional rate (40% or 45%)
Common situations where couples qualify include: one partner working part-time, one partner who has taken a career break for childcare, one partner who is retired with a small private pension, or one partner who is self-employed and making a loss or very low profit.
How the £1,260 Transfer Works
The transferring partner gives away 10% of the standard Personal Allowance (10% of £12,570 = £1,257, rounded to £1,260). Their own Personal Allowance is reduced from £12,570 to £11,310. The receiving partner's allowance increases from £12,570 to £13,830.
If the transferring partner earns nothing — or earns below £11,310 — this reduction makes no practical difference to them: they were not using that part of their allowance anyway. The receiving partner, however, pays 20% less tax on an extra £1,260 of income: a saving of £252 per year.
HMRC adjusts tax codes automatically. The transferring partner receives an N suffix (e.g. 1131N), and the receiving partner receives an M suffix (e.g. 1383M).
Backdating — Claim Up to £1,008 as a Lump Sum
One of the most valuable aspects of Marriage Allowance is that claims can be backdated up to four tax years. If you were eligible in previous years and never claimed, you can receive a lump sum refund for all backdated years in addition to the ongoing saving.
| Tax Year | Annual Saving | Claim Deadline |
|---|---|---|
| 2022/23 | £252 | 5 April 2027 |
| 2023/24 | £252 | 5 April 2028 |
| 2024/25 | £252 | 5 April 2029 |
| 2025/26 | £252 | 5 April 2030 |
| 2026/27 (ongoing) | £252 | — |
| Total (4 back years) | £1,008 lump sum |
The lump sum for backdated years is usually paid by cheque or bank transfer within 5 working days of the claim being processed. Future years are applied automatically through tax codes.
How to Apply
The lower-earning partner makes the claim — not the higher earner. You apply online at gov.uk/marriage-allowance. You will need:
- Both partners' National Insurance numbers
- Proof of identity for the transferring partner (passport, driving licence or a recent payslip)
- The receiving partner's date of birth
The process takes around 10 minutes online. HMRC will write to both partners to confirm the change, and the new tax codes should appear on the next payslip within 3–4 weeks.
Common Mistakes to Avoid
- Claiming when the receiving partner pays higher-rate tax: If the receiving partner earns above £50,270, they pay 40% tax and are not eligible to receive Marriage Allowance. Applying incorrectly will lead to HMRC rejecting or reversing the claim.
- Forgetting to cancel after circumstances change: If the transferring partner returns to full-time work and their income exceeds £12,570, they must cancel the transfer. If they become a higher-rate taxpayer, the claim must also stop. HMRC should be notified promptly to avoid an overpayment being collected through a future tax bill.
- Applying as the wrong partner: The lower-earner must apply, not the higher-earner. Applying from the wrong account will result in HMRC requesting a new application.
For a full step-by-step guide, including how to claim a refund for backdated years, visit our Marriage Allowance refund guide. You can also use our salary calculator to see how the new M tax code changes the receiving partner's monthly take-home.