Millions of married couples across the UK could be overlooking a tax break worth £252 annually, with the possibility of reclaiming up to £1,260 across five tax years. The benefit, known as Marriage Allowance, allows eligible partners to share part of their tax-free income allowance.
A Frozen Tax Threshold Is Putting More Pressure on UK Households
The UK’s standard Personal Allowance has remained frozen at £12,570 since 2021, leaving workers increasingly exposed to income tax as wages rise.
According to the Express, approximately two million people have been pushed into higher tax brackets because of frozen thresholds. This phenomenon, known as fiscal drag, increases tax liabilities even when wage increases merely reflect inflation.
AJ Bell director of personal finance Laura Suter explained the growing pressure:
“More people are being dragged into paying higher levels of tax, largely due to frozen allowances and thresholds that haven’t kept up with inflation. But at the same time, many households are overlooking completely legitimate ways to earn tax-free income, simply because they don’t realise what’s available. A little bit of knowledge about how the tax system works can go a long way.”
For couples who meet the eligibility requirements, Marriage Allowance provides a way to reduce their annual tax bill without changing their employment arrangements.
How Marriage Allowance Can Increase Tax-Free Income to £13,830
Under HMRC’s Marriage Allowance, a married person or civil partner can transfer £1,260 of their unused Personal Allowance to their spouse or partner.
This effectively raises the recipient’s tax-free allowance from £12,570 to £13,830, while reducing the transferring partner’s allowance to £11,310. The maximum annual tax saving is £252.
Suter explained:
“The marriage allowance is a great way to claim some money back if one half of the couple earns less than £50,270 a year and the other either earns less than £12,570 or doesn’t earn any money at all. The government lets those who are married or in a civil partnership share their tax-free earnings allowance each year. It means that if one of you hasn’t used up your personal allowance of £12,570 a year you can hand it over to your partner. That could save you up to £252 in the current tax year. It’s thought around two million couples are eligible for this tax break but not claiming it, and even those where one half of the couple is retired can claim the tax break.”
Eligibility generally requires one partner to have income below their Personal Allowance and the other to pay income tax at the basic rate. Different income limits apply in Scotland.
Image credit: Shutterstock
How to Claim Up to £1,260 Through HMRC Backdating
The financial benefit can extend beyond the current tax year.
Eligible couples can backdate Marriage Allowance claims for up to four previous tax years, potentially receiving £1,008 in retrospective tax relief alongside the current year’s £252 saving.
Suter said:
“What’s even better is that you can backdate any claims for up to four years, assuming you were eligible in those years. You can claim it online directly through the government, you’ll just need yours and your partner’s national insurance numbers plus some forms of ID. You can check if you’re eligible using the government’s calculator. But beware of scam websites that are mocked up to look like the government website but are actually imposters.”
For claims made during the 2026–27 tax year, the usual four-year limit means previous-year claims can go back to 2022–23, provided the couple qualified in each year.
Applications can be submitted free of charge through the official GOV.UK Marriage Allowance service.
For households facing rising tax bills, checking eligibility could uncover savings that would otherwise remain unclaimed.
