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Marriage Allowance – are you entitled to it?

The Marriage Allowance is a relatively new allowance that was introduced in 2015 that allows people to transfer £1,100 of their personal tax allowance to their spouse or civil partner if they earn less than £11,000. The spouse however must not earn more than £43,000.

As the allowance is applicable only to basic rate tax payers, your spouse has the potential to reduce their tax by £220. The allowance can be back dated to the tax year ended 5 April 2015 if you qualified then also.

It is the lower earning spouse who should apply for the allowance and the following must apply:

  • you’re married or in a civil partnership
  • you don’t earn anything or your income is under £11,000
  • your partner’s income is between £11,001 and £43,000

The application process is straight forward and can be done here: https://www.gov.uk/apply-marriage-allowance.

Whilst this tax saving is small, there is hope that the Budget this spring for the new Chancellor will see an increase in this tax break for married couples and families. We will let you know of any changes.

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