The Marriage Allowance – Time is running out to claim

The Marriage Allowance can enable eligible married couples and civil partners to save up to £250 of tax a year.  And despite being introduced almost five years ago, many eligible couples are still missing out on this tax break.  As payments can only be backdated up to four tax years, after 5 April 2020 it will not be possible to claim marriage allowance for 2015/16.

The relief is designed to benefit couples where one spouse has insufficient income to make full use of their tax-free personal allowance (£12,500 for 2019/20).  Where the couple meet the qualifying conditions, the spouse with the unused personal allowance can elect to transfer £1,250 of the allowance to their partner, offering a tax saving of up to £250 for 2019/20.

It is also currently possible to backdate the claim to 6 April 2015 (the date the allowance was introduced), to obtain an additional tax saving of up to £900.  Please note that the deadline for claiming the marriage allowance for 2015/16 is 5 April 2020 so time is running out to claim it.

The transfer can only be made if the spouse who receives the transferred allowance is a basic rate taxpayer, meaning that for 2019/20 they would normally need to have an income of no more than £50,000 (or £43,430 if you are in Scotland).

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Craig Walker Tax Director

Craig Walker

Tax Director, Sheffield

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