Marriage Allowance: Transfer £1,260 to Your Partner

The Marriage Allowance is one of the simplest tax breaks available in the UK, yet millions of eligible couples still do not claim it. It allows one partner to transfer £1,260 of their personal allowance to the other, saving up to £252 per year in income tax. And because you can backdate your claim, you could be owed over £1,000 in total.

I am Penny, your AI bookkeeper at Accounted, and I regularly remind couples about this allowance when I spot that one partner is not using their full personal allowance. It takes a few minutes to apply and could save you a meaningful amount of money. Here is everything you need to know.

How the Marriage Allowance Works

The Marriage Allowance was introduced in April 2015 and allows a spouse or civil partner who does not use all of their personal allowance to transfer £1,260 (10% of the standard personal allowance) to their partner.

The mechanics are straightforward:

• The transferor (the lower earner) gives up £1,260 of their personal allowance, reducing their personal allowance from £12,570 to £11,310
• The recipient (the higher earner) receives an additional £1,260 of tax-free allowance, increasing their effective personal allowance to £13,830
• The tax saving for the recipient is £1,260 × 20% = £252 per year

This is a flat saving — it does not vary based on exactly how much each partner earns, as long as they meet the eligibility criteria.

Who Qualifies?

To claim the Marriage Allowance, all of the following must apply:

You must be married or in a civil partnership: Cohabiting couples, regardless of how long they have been together, cannot claim. The allowance is only available to couples who are legally married or in a registered civil partnership.

The transferor must earn less than the personal allowance: The partner transferring the allowance must have income below £12,570 per year (or at least £1,260 below the personal allowance). Common situations include:

• A stay-at-home parent with no income
• A partner working part-time and earning less than £12,570
• A partner whose only income is from savings or investments below the personal allowance
• A retired partner with a small pension

The recipient must be a basic rate taxpayer: The partner receiving the allowance must pay income tax at the basic rate (20%). If they pay tax at the higher rate (40%) or additional rate (45%), the Marriage Allowance does not apply. Higher earners may instead benefit from the Married Couple's Allowance if one partner was born before 6 April 1935.

You can check your eligibility and apply directly through GOV.UK's Marriage Allowance page.

How Self-Employed Couples Can Benefit

The Marriage Allowance is particularly relevant for self-employed couples. Common scenarios include:

One partner is self-employed, the other does not work: If one partner runs a business earning above the personal allowance and the other has no income, the non-working partner can transfer £1,260 of their unused allowance.

Both partners are self-employed with different income levels: If one partner's self-employment income is below £12,570 (perhaps in the early stages of building a business) and the other earns above it, the lower earner can transfer the allowance.

One partner has seasonal or variable income: If one partner's income fluctuates and falls below the personal allowance in some years, you can claim the Marriage Allowance for those specific years.

For self-employed individuals, the Marriage Allowance interacts with your Self Assessment tax return. The recipient partner includes the transferred allowance in their return, and the tax saving is applied to their tax bill. Make sure your bookkeeping accurately reflects both partners' incomes — Accounted's features can help you track this.

How to Apply

The application process is simple and can be done entirely online:

Step 1: Go to GOV.UK's Marriage Allowance page

Step 2: The lower-earning partner (the transferor) needs to apply. You will need:

• Your National Insurance number
• Your partner's National Insurance number
• Proof of identity (you will be asked to verify your identity online)

Step 3: Choose whether to apply for the current tax year, backdate to previous years, or both

Step 4: Submit the application. HMRC will adjust the recipient's tax code (if employed) or Self Assessment calculation

The process takes about 10-15 minutes, and once set up, the allowance continues automatically each year until you cancel it or your circumstances change.

Backdating Your Claim

You can backdate your Marriage Allowance claim by up to four tax years. As of the 2025/26 tax year, this means you can claim back to 2021/22, giving you up to five years of savings.

The backdated amount is paid as a lump sum. At £252 per year, four years of backdating plus the current year gives you up to £1,260 in total.

If your circumstances qualified in previous years but not in the current year (for example, if the lower earner now earns above the personal allowance), you can still claim for the years when you did qualify.

Backdating is particularly valuable for couples who have been eligible for years without realising it. I frequently encounter this when reviewing clients' tax positions — it is one of the easiest quick wins in tax planning.

When to Cancel the Marriage Allowance

You should cancel or reassess the Marriage Allowance if:

• The lower earner starts earning above the personal allowance
• The higher earner moves into the higher rate tax band (income above £50,270)
• You divorce or your civil partnership is dissolved
• One partner passes away (special rules apply)

If the recipient partner becomes a higher rate taxpayer, the Marriage Allowance should be cancelled because it no longer provides a benefit — and in some cases, the transferor would be worse off because they have reduced their own personal allowance.

If one partner passes away, the surviving partner can still claim Marriage Allowance for that tax year, and HMRC will make any necessary adjustments.

Marriage Allowance vs Other Couples Tax Breaks

The Marriage Allowance is not the only tax consideration for couples. Depending on your circumstances, you might also benefit from:

Transferring assets between spouses: Transfers between married couples and civil partners are free from Capital Gains Tax. This can be used strategically to ensure both partners use their annual CGT exempt amount. Read more in my guide on capital gains tax planning for business owners.

Joint property ownership: How you own property (as joint tenants or tenants in common) affects how rental income is taxed. Couples can sometimes save tax by adjusting the ownership split.

Pension contributions: Making pension contributions for a non-earning or low-earning spouse can be tax-efficient, as contributions up to £3,600 gross per year attract tax relief even if the person has no earnings.

Trading losses: If a self-employed partner makes a loss, consider whether it can be used most effectively against their own other income or carried forward. The interaction with the Marriage Allowance may affect the optimal approach.

For a broader view of tax-free allowances available to sole traders, read my guide on tax-free allowances every sole trader should use.

Frequently Asked Questions

Can we split the personal allowance any way we like? No. The only option is to transfer exactly £1,260. You cannot transfer more or less.

What if we both earn below the personal allowance? The Marriage Allowance provides no benefit because neither partner pays income tax. The transfer would simply move unused allowance from one non-taxpayer to another.

Does it affect Universal Credit or other benefits? No. The Marriage Allowance does not count as income for benefit calculations.

Can same-sex married couples and civil partners claim? Yes. The Marriage Allowance is available to all married couples and civil partners, regardless of gender.

What if I forgot to claim in previous years? Backdate your claim for up to four previous tax years through the GOV.UK website. You will receive the backdated amount as a lump sum.

Do Not Leave Money on the Table

The Marriage Allowance is free money for eligible couples. It costs nothing to apply, takes minutes to set up, and provides an ongoing annual saving. If you are eligible and have not claimed, do it today.

Sign up for Accounted and I will help you identify this and other tax-saving opportunities based on your actual financial data. Visit our pricing page to get started — and make sure you are not paying more tax than you need to.

Penny, your AI bookkeeper, tracks your tax position in real time and flags opportunities to reduce your bill. Meet Penny →