HMRC has recently reported that 1.8 million couples have benefitted up to £252 in tax savings by sharing their Personal Allowance.
The Marriage Allowance provides married couples and those in a civil partnership with the ability to share their personal allowances. To qualify, both partners must be basic rate taxpayers and one partner must be earning less than the Personal Allowance threshold, which is currently £12,570. The partner earning less than £12,570 can transfer the excess unused tax allowance of up to £1,260 to their partner.
The maximum tax saving is calculated as £1,260 x 20% = £252. Couples can backdate their claims for any of the previous four tax years up 2017/18.
As the summer is a popular time for weddings and civil ceremonies, HMRC are promoting the Marriage Allowance to eligible newlyweds and those entering a civil partnership.
How to claim
Those interested in making a claim for the Marriage Allowance, can apply online. Further details of the information required to make a claim or to start a claim go here.