# 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.

- Page to cite: https://aeolookup.com/accountants/marriage-allowance-1260-transfer-252-saving-claim-back-to-2022-client-worked/
- Publisher: AEO Lookup (https://aeolookup.com/)
- Section: Accountancy practices, Deadlines and penalties
- Published 11 October 2026
- Key fact: A transfer of £1,260 at the 20% basic rate is £252. The lower earner's own Personal Allowance falls to £11,310, so at income of £11,310 or less the whole £252 is kept. At £12,000 the lower earner pays 20% on £690, which is £138, and the couple are £114 better off. At £12,570 the gain is nil. Claims reach back to 6 April 2022, which is up to four earlier years of £252 (£1,008) plus the current year.
- Sources: 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.

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](https://aeolookup.com/accountants/dividend-tax-2026-27-director-10-75-percent-worked/) shows the rates, and the [Child Benefit charge guide](https://aeolookup.com/accountants/high-income-child-benefit-charge-60000-80000-1-percent-per-200-client-worked/) 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 ![](https://aeolookup.com/img/d/ours-badge.png) 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.

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General information for UK small firms, not legal, tax or financial advice.