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Deadlines and penalties
Marriage Allowance: the £1,260 transfer is worth £252 a year, but only until the lower earner's income passes £11,310
Marriage Allowance moves £1,260 of allowance to a partner and saves up to £252 a year. Worked at four incomes for the lower earner, with claims back to 2022.
A husband and wife come in for the year-end accounts. She earns £10,500 from part-time work; he is a higher-paid employee, still within the basic-rate band. Nobody has claimed Marriage Allowance. It is easy to say "there is a £252 relief" and move on, but the saving is not always £252, and the claim can reach back several years. This guide shows what the figure is at the lower earner's income, and how many years can still be recovered.
The rule on GOV.UK
Marriage Allowance lets one spouse or civil partner transfer £1,260 of their Personal Allowance to the other. The partner's tax falls by up to £252 in a tax year. GOV.UK's tests are that the giver's income is below the Personal Allowance (usually £12,570), the receiver pays Income Tax at the basic rate (in England, Wales and Northern Ireland usually income between £12,571 and £50,270; in Scotland starter, basic or intermediate rate, usually up to £43,662), and the couple are married or in a civil partnership. Living together is not enough.
What the saving is at four incomes
The transfer costs the lower earner £1,260 of allowance. If their income no longer fits under the reduced allowance of £11,310, they start paying 20% on the excess.
| Lower earner's income | Own tax after transfer | Partner's saving | Couple's net gain |
|---|---|---|---|
| £10,500 | £0 | £252 | £252 |
| £11,310 | £0 | £252 | £252 |
| £12,000 | £138 | £252 | £114 |
| £12,570 | £252 | £252 | £0 |
Our own arithmetic is the last two rows: at £12,000 the lower earner is £690 over £11,310, and 20% of £690 is £138. GOV.UK says the income must be below the allowance; it does not say the saving is worth having all the way up, so do the sum before you recommend the claim for someone near £12,570.
How far back it goes
GOV.UK says you can backdate a claim to 6 April 2022. From today that covers the 2022 to 2023, 2023 to 2024, 2024 to 2025 and 2025 to 2026 tax years, and the current one. At the maximum £252 that is four earlier years of £1,008, and £1,260 including this year. The page says the reduction depends on the Personal Allowance rate for each year claimed, so treat £252 as the ceiling and check each year against the client's own income. Backdated claims go by post.
What to ask the client
- Was either of them born before 6 April 1935? GOV.UK says Married Couple's Allowance may suit them better, and they cannot have both.
- Has the lower earner had a year over £11,310? Run the table for that year; the saving there is smaller.
- Is the higher earner a basic-rate taxpayer in every year? A year in the higher-rate band does not qualify.
- Does either of them have dividends or savings interest? GOV.UK points them to the online calculator in those cases.
If the higher earner is a director choosing between salary and dividends, the dividend tax guide shows the rates, and the Child Benefit charge guide matters if either of them is near £60,000.
I did not read the separate "how to apply" pages, so check the current routes (online for the current year, by post for backdated claims) before you file.
Overlyft builds AI staff who join your practice team and read each client's pay records at the start of the year, flag married couples where one spouse is under £11,310 and the other is a basic-rate taxpayer, and draft a claim note for you to review before it goes to the client.
This is general information, not tax advice. Check GOV.UK and the client's own figures before you advise.
Where this comes from: GOV.UK, "Marriage Allowance" (transfer £1,260 of Personal Allowance; partner's tax falls by up to £252 a tax year; the lower earner's income must be below the Personal Allowance, usually £12,570; partner a basic-rate taxpayer, usually £12,571 to £50,270; backdate to 6 April 2022). Read 11 October 2026.
AEO Lookup editorial team
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