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Millions to benefit from marriage tax break

26th February 2015

More than 4 million married couples and 15,000 civil partnerships stand to benefit from the Marriage Allowance, according to official government estimates.

From April 2015, the Marriage Allowance will allow a spouse or civil partner to transfer up to £1,060 of their personal allowance to their partner.

To be eligible for the tax break, donors must be earning less than the basic rate threshold (£10,600) and the recipient must be not be paying more than the basic rate of tax.

Prime Minister David Cameron said the measure will give "extra support and more financial security" to married couples.

Chancellor George Osborne said:

"Our new Marriage Allowance means saving £212 on your tax bill couldn't be simpler or more straightforward."

How to register for the allowance

To take advantage of the tax break, one person in a couple will need to apply online via the government's website. They will be able to do so at any time during the tax year.

HMRC will notify the recipient of the changes to their PAYE tax code.

You could be eligible for the allowance if:

  • you're married or in a civil partnership
  • you have annual income of less than £10,600
  • your partner has an annual income of between £10,601 and £41,385
  • both of you were born after 6 April 1935.

Talk to us about planning your personal taxes.