There are still over one million not claiming marriage allowance despite it being recommended by HMRC. They also estimate that of all eligible couples, one in four have not made a claim.
Marriage allowance is available to married couples or civil partners. This allows an individual to transfer their personal allowance of up to £1,190 to their partner that earns more than them.
In order to be eligible for the allowance, the transferring partner’s income must not exceed £11,850 and the higher earner must not be a higher rate taxpayer.
Making this claim increases the higher earner’s personal allowance by the amount transferred. The maximum tax saving for the higher earning couple will therefore be £238 for 2018/19 (£1,190 x 20%).
The claim can be backdated to 2015/16 which can be worth up to £900. It will need to be made by 5 April 2019 or the allowance for 2015/16 will be lost for good.