UK Marriage allowance transfer


Have you ever wondered if you can claim for the UK Marriage Allowance Transfer? On the other hand, have you never been aware that this exists or you did not know how this works?

The transfer is worth up to £250 to you per year. Although this is not a lot, it may be worth doing in the case of some couples.

Two separate articles which explain how your personal tax position can be affected in the UK are the UK child benefit tax charge and the student loan repayments.

You might also make a saving via your self-assessment tax return if you have invested into an Enterprise Investment Scheme during the tax year.                  

Missing out   

It is a fact, many people miss out on the marriage allowance claim. The reason for this is simply due to a lack of awareness on the subject. Your contractor accountant will be able to help check if this could be beneficial for you.

In previous times, the UK Marriage Allowance was brought in by the Coalition Government. Today, both married couples and civil partners are able to claim for this.

The process   

How the UK Marriage Allowance Transfer works   

This UK Marriage Allowance Transfer will allow couples to transfer part of their Personal Allowance (PA). The transfer is 10% of one partner’s PA to the higher-earning partner’s PA. In 2021/22, the PA is £12,570. Therefore, one partner is able to transfer £1,250 of their PA to their partner. In turn, this will result in an income tax saving of £250 for the higher earner.

If you are entitled to claim will depend on the income of both people in the marriage. In addition, people in civil partnerships are also able to claim.

When can you transfer the UK Marriage Allowance?     

When one of the partners has an income of £12,570 or less, you can transfer the allowance. Please note, the other partner should not be a higher or additional tax ratepayer. By this, one means they are not earning over £50,270 during the tax year, 2021/22.

Therefore, to be eligible, one partner must be a non-taxpayer. The other one needs to be a basic rate taxpayer.

If you claim for this, the non-taxpayer will transfer precisely 10% of the prevailing PA for the tax year in question.

There may be instances where the non-taxpayer has already used up some of their tax allowances. The 10% transfer then results in some tax becoming payable.

You can apply online     

You can apply for the UK Marriage Allowance online via the HMRC website. When you apply, you will need both yours and your partner’s NI numbers. What’s more, you apply via the person’s account who is transferring part of their marriage allowance to their partner. You will also need proof of ID. This ID includes your passport, payslip details, and tax credits. Finally, you will also need the bank account where you receive child benefit, etc.

If your application is accepted HMRC, they will issue updated tax codes. These will show the transfer of the UK Marriage Allowance from one partner to the other. HMRC will also update the change to the start of the current tax year.

You can also do this via the Self Assessment service in your HMRC account.

Final thoughts

Many couples overlook to check if they claim for the UK Marriage Allowances. Although this is not a significant amount, it is worth claiming for if you qualify. If you are not sure how to go about this after reading the above, please take the time to speak to your accountant.

If you have had several employments previously in your working life, and you have pension schemes dotted around from these jobs, something that you may be interested in is pension consolidation.

Link to Contractor Advice UK group on 


Published On: March 31st, 2021 / Categories: Member Only Articles, Self-Assessment, Tax Saving Guides / Tags: /

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