Marriage Allowance

There are many, many ways to reduce your personal tax bill due to HMRC through Government schemes and incentives to special tax rates for individuals and couples.

One example includes the use of spousal tax relief where couples can use the ‘marriage allowance’ to offset any personal income tax on one individual by the spouse allowing that individual to ‘use’ some of their tax free allowance to increase their tax free allowance in any individual tax year.

This only applies if one spouse is earning less than the annual tax-free allowance given, which in 2019/20 was £12,500. For example, if one spouse earned less than £12,500, the other spouse could apply for marriage allowance to transfer a fixed % of the ‘left over’ tax free allowance from the spouse who earns less than £12,500 to increase their £12,500 tax free allowance to a larger amount to be paid tax-free each year before paying 20% on their income.

Obviously this is all dependent on other circumstances but in theory if one spouse earns less than the tax-free allowance for the particular tax year and the other earns more than this allowance, their may be some tax to save.

For more information on marriage allowance, please visit or contact us directly.

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