If you are married or in a civil partnership, you and your partner may be eligible for the tax-free break known as marriage allowance, and if your claim is backdated, you may take home a lump sum of up to £900.
This tax year (2018/2019), the allowance allows the transfer of £1,190 from a low-earner’s personal allowance to their higher-earning partner. That’s a saving of up to £238. Next tax year, when the personal allowance goes up to £12,500, the transferable sum will be £1,250, saving £250 in tax.
To be eligible, the lower earner must:
- be either married or in a civil partnership
- either not be taxpayers or have an income below the personal allowance
- have a partner who pays tax at the basic rate ie annual income must be between £11,851 and £46,350
To apply go to the HMRC’s website. Note that the lower earner is the applicant.