Marriage Allowance lets a husband, wife or civil partner whose income is below the Personal Allowance transfer £1,260 of that allowance to a partner who pays tax at no more than the basic rate. For the 2026 to 2027 tax year it cuts the receiving partner’s tax by up to £252, and a claim can still be backdated to 6 April 2022.

How does Marriage Allowance actually work?

The rules sit in Chapter 3A of Part 3 of the Income Tax Act 2007, with the entitlement test in section 55B. The partner with the lower income (HMRC calls them the transferor, the legislation calls them the relinquishing spouse or civil partner) makes an election to give up 10% of the standard Personal Allowance. Their own Personal Allowance falls by that amount, and the other partner gets a tax reduction equal to the basic rate on the transferred amount.

For 2026 to 2027 the standard Personal Allowance is £12,570. Ten per cent of that is £1,257, but section 55B(5) rounds the transferable amount up to the next multiple of £10, which is why the figure is £1,260. The maximum saving is 20% of £1,260, which is £252.

Because the benefit is a fixed reduction at the basic rate, it is worth the same £252 to a Scottish recipient. Section 55B(3) uses the Scottish basic rate for a Scottish taxpayer, and that rate is 20%.

Who can claim Marriage Allowance?

All of these conditions must be met:

  • You are married or in a civil partnership. Couples who live together without being married or in a civil partnership cannot claim.
  • The transferring partner does not pay Income Tax, or has income below the Personal Allowance (usually £12,570).
  • The receiving partner pays tax at the basic rate, which usually means income between £12,571 and £50,270 before Marriage Allowance is given.
  • If the receiving partner is a Scottish taxpayer, they must pay at the starter, basic or intermediate rate, which usually means income between £12,571 and £43,662.

Receiving a pension does not stop a claim, and neither does living abroad, as long as the person still gets a Personal Allowance. Section 55B(2)(c) contains the residence condition.

Marriage Allowance and Married Couple’s Allowance cannot be claimed together (section 55B(2)(d)). If either partner was born before 6 April 1935, Married Couple’s Allowance is usually worth more: for 2026 to 2027 its maximum amount is £11,700 and its minimum is £4,530.

The dividend trap for the receiving partner

Section 55B(2)(ba) deals with dividends. If the receiving partner’s dividends are covered by the dividend allowance (£500 for 2026 to 2027), they only stay eligible if those dividends would not have been taxed at the dividend upper rate without the allowance. In practice a director with a basic rate salary whose dividends take total income into the higher rate band is not eligible, even though the first £500 of dividends is taxed at 0%.

How much is it worth in practice?

HMRC’s own example on GOV.UK shows why the lower earner’s income needs checking. One partner has income of £11,500 and the other £20,000. Before the claim the couple pays tax on £7,430. After the transfer, the lower earner’s allowance becomes £11,310, so they pay tax on £190, while the higher earner’s taxable income falls to £6,170. The couple is now taxed on £6,360 instead of £7,430, a saving of £214 rather than the full £252.

Illustration only. The table below uses the 2026 to 2027 basic rate of 20% to show how the net gain shrinks as the transferor’s income rises towards the Personal Allowance.

Transferor’s income Extra tax for transferor Tax saved by recipient Net gain for the couple
£8,000 £0 £252 £252
£11,310 or less £0 £252 £252
£12,000 £138 (20% of £690) £252 £114

Once the transferor’s income reaches the full Personal Allowance, the extra tax they pay matches the recipient’s saving and there is nothing to gain.

How do you apply, and who should make the claim?

The quickest route is the online service. You need both partners’ National Insurance numbers, and HMRC says you will get an email confirming the application within 24 hours. If both partners have no income other than wages, the lower earner makes the claim. If either has dividends or savings income, HMRC suggests working out who should claim, or calling the Income Tax helpline.

If the transferor files a Self Assessment return, they complete the Marriage Allowance section; the receiving partner leaves that section blank. Where both partners file, the transferor should file at least 3 days before the recipient. A successful claim is backdated to 6 April of the tax year.

HMRC gives effect to the transfer either through the recipient’s tax code, which can take up to 2 months, or through their Self Assessment return. Codes change as follows:

  • The transferor’s code ends in N. With a £12,570 allowance reduced by £1,260 to £11,310, the code is 1131N.
  • The recipient’s code ends in M. An allowance of £13,830 gives the code 1383M.

The allowance then rolls over automatically every year until it is cancelled. A transferor whose code already ends in N or M does not need to complete the Self Assessment section again. See PAYE tax codes explained for how the numbers are built.

Can you backdate a Marriage Allowance claim?

Yes. A claim can go back to 6 April 2022, the start of the 2022 to 2023 tax year, for any year in which you were eligible. The reduction for each earlier year depends on that year’s Personal Allowance. The Personal Allowance was £12,570 in each year from 2023 to 2024 to 2026 to 2027, so each of those years is worth up to £252.

HMRC says there is a different way to apply when you want to backdate, so check the GOV.UK guidance before using the standard online form. If the partner died after 5 April 2022, a claim is still possible by phoning the Income Tax helpline; if the deceased was the lower earner, the person dealing with their tax affairs makes the call.

What happens if your circumstances change?

You must cancel Marriage Allowance if the relationship ends through divorce, dissolution or legal separation, if your income changes so that you are no longer eligible, or if you simply no longer want to claim. Either partner can cancel when the relationship has ended; otherwise only the person who made the claim can cancel. Leaving the section of a Self Assessment return blank does not cancel it.

  • Cancelling because of a change of income: the allowance runs to the end of the tax year (5 April).
  • Cancelling because the relationship ended: the change may be backdated to 6 April, which can leave one of you with tax underpaid for the year.

If the recipient dies, their estate keeps the increased allowance and the transferor’s allowance returns to the normal amount. If the transferor dies, the surviving recipient keeps the higher allowance until 5 April and the estate is treated as having the reduced allowance.

What mistakes do people make with Marriage Allowance?

  • Forgetting it renews every year. A pay rise, bonus or rental income can lift the recipient above £50,270 (or £43,662 in Scotland). The claim continues until cancelled, which can leave the recipient with tax underpaid.
  • Ignoring the transferor’s other income. Interest and dividends count. Someone with modest wages plus savings interest can end up with less benefit than expected; see tax on savings interest and the Personal Savings Allowance.
  • Directors paid in dividends. The dividend rule in section 55B(2)(ba) catches recipients whose dividends would fall in the higher rate band. Check against the dividend allowance and tax rates.
  • Applying the Scottish limit wrongly. A Scottish recipient can still claim while paying 21% at the intermediate rate, but not once they reach the Scottish higher rate. See Scottish Income Tax rates and bands.
  • Confusing it with the Personal Allowance taper. Marriage Allowance is a transfer between partners; the reduction above £100,000 of adjusted net income is a separate rule covered in Personal Allowance tapering.

The headline rates and allowances used on this page are collected in UK tax rates and thresholds for 2026 to 2027.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.