Marriage Allowance Explained: Who Can Claim and How

Marriage Allowance lets the lower earner in a marriage or civil partnership transfer £1,260 of their Personal Allowance to their partner, which cuts the partner's Income Tax by up to £252 in the tax year. You can claim if you are married or in a civil partnership, your own income is below the Personal Allowance, and your partner pays tax at the basic rate. This guide covers who qualifies in 2026/27, how to apply, and how the transfer shows up on a tax code or Self Assessment return.

Key takeaways

• The transfer is a fixed £1,260. You cannot move a smaller or larger amount.
• The most the receiving partner can save is £252 in a tax year.
• Couples who live together but are not married or civil partners cannot claim.
• GOV.UK currently allows claims to be backdated to 6 April 2022.
• Once set up, it continues every year until someone cancels it.

What is Marriage Allowance?

Your Personal Allowance is the amount of income you can have before you pay Income Tax. The standard figure for 2026/27 is £12,570. If one partner does not use all of theirs, part of it is simply wasted. Marriage Allowance lets that partner give £1,260 of it to their husband, wife or civil partner. Their own allowance drops to £11,310 and the partner gets a reduction of £1,260 on their taxable income, which at the 20% basic rate is worth £252. The rules are set out on GOV.UK under Marriage Allowance, and our guide to the Personal Allowance and Income Tax bands explains the allowance itself.

Who can claim

GOV.UK says you can benefit if all of the following apply:

• You are married or in a civil partnership.
• You do not pay Income Tax, or your income is below your Personal Allowance (usually £12,570).
• Your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance.

In Scotland, your partner must pay the starter, basic or intermediate rate. GOV.UK says this usually means income between £12,571 and £43,662. Receiving a pension, or living abroad while still entitled to a Personal Allowance, does not stop a claim.

Why it matters for the self-employed and company directors

Sole traders and directors whose husband or wife works part time, cares for children or has a small pension are the households most likely to qualify. Two points need care. First, the income test looks at all taxable income, not just wages. A sole trader's figure is their taxable profit. A director's figure includes salary and dividends together, so a good year for dividends can push the receiving partner out of the basic rate band. Second, GOV.UK says that if either of you has other income such as dividends or savings, you may need to work out who should claim, and suggests calling the Income Tax helpline if unsure. Our guides to dividend tax rates and director salary and dividends show how that income is taxed.

How to claim, step by step

1. Check both incomes for the tax year. Use taxable profit for self-employment and include dividends, savings interest, pensions and rent.
2. Decide who transfers. It is the lower earner, whose income is below the Personal Allowance.
3. Have both National Insurance numbers ready. The online service asks for yours and your partner's.
4. Apply. If neither of you is in Self Assessment, the lower earner can apply for Marriage Allowance online. If you are registered for Self Assessment or want to backdate, GOV.UK describes a different route on its how to apply page.
5. On a tax return, only the transferor fills in the section. The person receiving the allowance leaves the Marriage Allowance section blank.
6. File in the right order. If you both send returns, the transferor should file at least 3 days before the recipient.
7. Check the result. Look for the new tax code or the reduction in the recipient's tax calculation.

How it shows on a tax code or tax return

HMRC gives the recipient the transferred allowance either by changing their tax code, which GOV.UK says can take up to 2 months, or when they send their Self Assessment return. A tax code ending in M means you are receiving the allowance. A code ending in N means you are transferring it. For a sole trader with no PAYE income, there is no code to change, so the saving appears as a reduction in the tax calculation for the year and lowers the bill due by 31 January.

If your code already ends in N or M, you do not need to complete the Marriage Allowance section of your return again.

Marriage Allowance and Married Couple's Allowance compared

The two are often confused. You cannot receive both at the same time.

If either of you was born before 6 April 1935, read the GOV.UK guide to Married Couple's Allowance before applying, as it may be worth more to you as a couple.

Worked example (illustrative)

"Hannah and Joel Whitcombe", an illustrative example, are married and live in England. In 2026/27 Joel is a self-employed driver with a taxable profit of £32,000. Hannah works a few hours a week and earns £9,000.

Hannah transfers £1,260. Her Personal Allowance becomes £11,310, which is still above her £9,000 income, so she pays no tax. Joel's taxable income falls by £1,260, and 20% of £1,260 is £252. As a couple they are £252 better off for the year.

Now suppose Hannah earned £12,000 instead. With an allowance of £11,310 she would pay tax on £690, which at 20% is £138. Joel would still save £252, so the couple would gain £114, a smaller benefit.

The couple and figures are invented for illustration and are not real clients.

When to cancel

You must cancel if your relationship ends through divorce, dissolution or legal separation, if your income changes so that you are no longer eligible, or if you no longer want to claim. Where income is the reason, the allowance runs to the end of the tax year on 5 April. Where the relationship has ended, the change may be backdated to the start of the tax year, which can leave one of you with tax to pay. See the GOV.UK page on what to do if your circumstances change.

Common mistakes

• The wrong partner applies. The claim is made by the person giving up the allowance, not the one receiving it.
• Forgetting dividends and savings. All taxable income counts towards both tests.
• Leaving it running after a pay rise. If the recipient moves into the higher rate band, the claim must be cancelled.
• Assuming a blank tax return section cancels it. It does not. You must cancel online or by phone.
• Not looking back. Earlier eligible years may still be open to a backdated claim.

How we can help

When we prepare a Self Assessment return, we check whether Marriage Allowance applies to your household, whether it is still valid this year, and whether it is showing correctly in your calculation. Personal tax returns start from £180 per year on a fixed fee. See our personal tax service, view our pricing, or contact us before the 31 January 2027 deadline for 2025/26 returns.