March is top month for marriage allowance claims
HM Revenue and Customs (HMRC) has revealed that March is the most popular month for marriage allowance applications, with almost 70,000 couples applying last March.
Any eligible couples who chose to apply this year could also get a lumpsum payment worth more than £1,000 if they opt to backdate their claim for the last four tax years.
And they could also reduce their tax bill for the 2023 and 2024 tax year by up to £252.
Marriage allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays by transferring up to 10% of their tax-free personal allowance to them.
The maximum amount that can be transferred to your husband, wife, or civil partner is £252 for the 2023/24 tax year or £1,260 if you backdate your claim for last four years.
To benefit from the tax relief, one partner must have income less than the personal allowance of £12,570, and the higher earning partner’s income must be between £12,571 and £50,270.
People can find out if they’re eligible for the tax saving by using the government’s online marriage allowance calculator.
Caroline Chell
Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.
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