Marriage Allowance in 2026/27: who can transfer £1,260 and how it works
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Marriage Allowance lets one partner transfer £1,260 of their Personal Allowance to a spouse or civil partner, cutting that partner's tax by up to £252 in 2026/27. This guide explains who qualifies, how to claim and when to cancel.
What Marriage Allowance is and how it works
Marriage Allowance is a way for a married couple or civil partners to share some of their tax-free income. Every taxpayer has a Personal Allowance, the amount of income they can receive each year before paying Income Tax, which is usually £12,570. Under Marriage Allowance, a partner who does not use all of theirs can transfer £1,260 of it to the other. The partner who receives it has a higher allowance, so less of their income is taxed, and their bill falls by up to £252 over the tax year, which runs from 6 April to 5 April. The partner who gives up the £1,260 may pay a little more tax if their income is now above their reduced allowance, but the couple can still be better off overall.
Who can use it, and who cannot
To benefit, you must be married or in a civil partnership. The partner giving up the allowance must either not pay Income Tax or have income below the standard Personal Allowance of £12,570. The partner receiving it must pay tax at the basic rate, which is usually on income between £12,571 and £50,270 before the transfer. Receiving a pension does not stop a claim, and living abroad does not either, provided you are entitled to a Personal Allowance. Couples who live together without being married or in a civil partnership cannot claim. Nor can anyone whose income is above their Personal Allowance, or whose partner pays tax at the higher or additional rate.
- Both partners must be married or in a civil partnership
- The giver has income below £12,570 or pays no Income Tax
- The receiver pays basic rate tax (or the Scottish equivalent below)
- Unmarried couples who live together cannot claim
Differences in Scotland, Wales and Northern Ireland
Marriage Allowance is a UK-wide scheme, but the income range that qualifies the receiving partner depends on where they pay tax. In England, Wales and Northern Ireland the receiving partner must pay the basic rate. In Scotland they must pay the starter, basic or intermediate rate, which GOV.UK describes as usually on income between £12,571 and £43,662. The Scottish bands for 2026/27 are 19% on income from £12,571 to £16,537, 20% from £16,538 to £29,526, 21% from £29,527 to £43,662, then 42% from £43,663 to £75,000. Because Scottish rates differ, the value of the transfer for a Scottish taxpayer can differ from the £252 figure, so it is sensible to ask HMRC for a personal figure.
A worked example
These figures are illustrative only. Suppose Sam has income of £11,000 and their spouse Alex has income of £30,000, all from jobs in England. Without a claim, Alex pays 20% on £30,000 minus £12,570, which is £17,430, so £3,486. If Sam transfers £1,260, Alex's allowance becomes £13,830 and the taxable income falls to £16,170, giving £3,234. The difference is £252. Sam's allowance falls to £11,310, which is still above Sam's £11,000 income, so Sam pays no extra tax and the couple are £252 better off. Now suppose Sam's income were £12,000. The reduced allowance of £11,310 would leave £690 taxable, costing £138 at 20%, so the net gain would be £252 minus £138, or £114.
How to claim, backdate and cancel
The claim is usually made online by the lower earner, and a claim can also be made through Self Assessment or by post. HMRC normally gives the benefit by changing the receiving partner's tax code, which can take up to two months, so it is not a refund cheque. The receiver's code usually ends in M and the giver's in N. GOV.UK says a claim can be backdated to 6 April 2022 for any year in which both partners were eligible, and backdated claims are made by post. The transfer carries on each year until it is cancelled. It must be cancelled after a divorce, dissolution or legal separation, or if income changes so you no longer qualify. Only the person who made the claim can cancel because they no longer want it. If a partner dies, the allowances are adjusted for the year and the survivor can still claim in some cases.
Common mistakes and where to get help
One common slip is assuming the claim is a one-off, when it renews automatically until cancelled, so a change such as a pay rise can matter. Another is overlooking that the giver may owe a small amount of tax, as in the second example. Couples with other income such as dividends, savings interest or benefits in kind may find it harder to work out who should claim. Anyone born before 6 April 1935 who is married or in a civil partnership might be able to claim Married Couple's Allowance instead, which GOV.UK says can reduce tax by between £436 and £1,127 a year. You cannot have both. HMRC's Marriage Allowance helpline is 0300 200 3300, open Monday to Friday, 8am to 6pm, and MoneyHelper and Citizens Advice offer free guidance.
Check before you act
Tax rules, rates and thresholds change, and your own circumstances decide what applies. This guide is general information, not personal advice, so confirm the details on the official pages linked below or with HMRC before making or cancelling a claim.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
