If you are married or in a civil partnership in the UK, you may be able to reduce the amount of tax you pay. Many couples are unaware that the tax system offers specific benefits designed to support married partners. Two important schemes you should know about are the Marriage Allowance and the Married Couple’s Allowance.
Understanding how these work can help you save money every year. In some cases, you may even be able to claim money back for previous tax years.
This guide explains everything in a simple and practical way so that you can clearly see how these allowances apply to you.
What Is Marriage Allowance?
Marriage Allowance is a tax benefit that allows one partner to transfer part of their Personal Allowance to the other.
The Personal Allowance is the amount of income you can earn before you start paying income tax. For the 2025/26 tax year, this is £12,570.
If you do not use all of your Personal Allowance, you can transfer £1,260 of it to your spouse or civil partner.
This can reduce your partner’s tax bill by up to £252 per year.
How Marriage Allowance Works
The idea behind Marriage Allowance is simple. If one of you earns less and does not fully use your tax-free allowance, the unused portion can help reduce the other partner’s tax.
Here’s how it works in practice:
- You transfer £1,260 of your Personal Allowance
- Your partner gets a 20% tax reduction on that amount
- This results in a saving of up to £252 in a tax year
It is important to understand that this is not a direct increase in income. Instead, it reduces the amount of tax your partner has to pay.
Who Can Qualify for Marriage Allowance?
You may qualify for Marriage Allowance if all of the following apply:
- You are married or in a civil partnership
- You are not claiming Married Couple’s Allowance
- One partner earns less than £12,570 (or does not pay income tax)
- The other partner is a basic rate taxpayer
For most people in the UK, this means your partner must earn between £12,571 and £50,270.
If you live in Scotland, the income limits are slightly different. Your partner must be within the starter, basic, or intermediate rate, which usually means income up to £43,662.
What Happens to Your Tax Code?
If you apply for Marriage Allowance, HMRC adjusts your tax codes.
- The partner receiving the allowance will usually have a tax code ending in “M”
- The partner transferring the allowance will have a tax code ending in “N”
These changes show that the allowance is being applied.
How to Apply for Marriage Allowance
Applying is straightforward and can be done in two ways:
- Online through HMRC
- By calling HMRC on 0300 200 3300
You will need:
- Your National Insurance number
- Proof of identity
Once your application is approved, the allowance is usually applied automatically in future years unless your circumstances change.
Can You Claim Marriage Allowance for Previous Years?
Yes, and this is where many couples miss out.
You can backdate your claim for up to four years, as long as you met the eligibility conditions during those years.
This means you could receive a lump sum refund if you did not claim earlier.
For example, backdating can lead to savings of over £1,000 in total, depending on your situation.
However, you must meet the income conditions for each individual year you are claiming.
What If Your Partner Has Died?
If your partner has passed away, you may still be able to claim Marriage Allowance.
You can:
- Apply for the allowance
- Backdate the claim for up to four years
- Claim up to the tax year in which your partner died
In such cases, you will usually need to apply by phone through HMRC.
What Is Married Couple’s Allowance?
Married Couple’s Allowance is different from Marriage Allowance. It is a separate and more generous tax relief, but it is only available in specific situations.
You may qualify if:
- You are married or in a civil partnership
- At least one of you was born before 6 April 1935
Because of this requirement, it mainly applies to older couples.
How Married Couple’s Allowance Works
Unlike Marriage Allowance, this scheme does not involve transferring Personal Allowance. Instead, it provides a direct reduction in your tax bill.
For the 2025/26 tax year, Married Couple’s Allowance can reduce your tax by:
- A minimum of around £401
- A maximum of up to £1,037 per year
The exact amount depends on your income.
The tax relief is given at a rate of 10%, and there are upper and lower limits on how much you can claim.
Whose Income Is Used?
The rules depend on when you got married:
- If you married before 5 December 2005, the husband’s income is usually used to calculate the allowance (though it can be transferred to the wife)
- If you married after this date, the allowance is based on the income of the higher earner
Key Differences Between the Two Allowances
It is important not to confuse the two schemes.
Marriage Allowance:
- Available to younger couples
- Requires one partner to have low income
- Offers savings up to £252 per year
- Involves transferring part of Personal Allowance
Married Couple’s Allowance:
- Only for those born before April 1935
- Offers higher tax relief
- Does not involve transferring Personal Allowance
- Can reduce tax by up to £1,037 per year
You cannot claim both at the same time.
Additional Tax Benefits of Being Married
Apart from these allowances, marriage can also provide other tax advantages.
Inheritance Tax Benefits
If you are married or in a civil partnership:
- You can usually leave assets to your partner without paying inheritance tax
- Any unused allowance can be transferred to your partner
This means that together, you could pass on up to:
- £650,000 using the standard nil rate band
- Up to £1 million if the residence nil rate band applies
This can make a significant difference when planning your estate.
Capital Gains Tax Benefits
Marriage also helps reduce Capital Gains Tax (CGT):
- Each person has an annual tax-free allowance of £3,000
- As a couple, you can effectively use £6,000
You can also transfer assets between spouses without triggering CGT. This allows you to plan your finances more efficiently and reduce overall tax.
Income Tax Planning
If one of you pays tax at a lower rate, you can transfer income-producing assets to that person.
For example:
- Rental income can be shifted to the lower earner
- Shares can be transferred so dividends are taxed at a lower rate
This can reduce the total tax paid by your household.
Pension Benefits
Marriage can also affect pension rights.
Many pension schemes provide survivor benefits to a spouse after death. These benefits may not automatically apply to unmarried partners.
Each scheme has its own rules, but being married often gives you more security.
Why Many Couples Miss Out
Despite these benefits, many eligible couples do not claim Marriage Allowance.
Common reasons include:
- Lack of awareness
- Assuming they do not qualify
- Not realising they can backdate claims
This means that many couples are effectively leaving money unclaimed.
When Should You Apply?
You should consider applying if:
- One of you earns below the Personal Allowance
- The other is a basic rate taxpayer
- You have not claimed in previous years
Even if you are unsure, it is worth checking. The process is simple, and you could benefit financially.
Final Thoughts
Marriage and civil partnerships are not just personal commitments. They also come with practical financial advantages.
The Marriage Allowance is a simple way to reduce your yearly tax bill if one partner earns less. On the other hand, the Married Couple’s Allowance provides more generous relief for older couples.
In addition, being married can help you save tax through inheritance planning, capital gains, and income distribution.
If you take the time to understand and apply these benefits, you could reduce your tax burden and make better financial decisions as a couple.
Most importantly, these allowances are not automatic in every case. You often need to apply for them. So if you think you may qualify, it is worth acting sooner rather than later.