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The marriage allowance allows an individual to transfer 10% of his or her personal allowance (rounded up to the nearest £10) to his or her spouse or civil partner, as long as neither pays tax at a rate that is higher than the basic rate of tax.

Where one partner does not fully utilise their personal allowance, the marriage allowance enables them to give the benefit of some of that allowance to their partner, saving the couple tax of up to 20% of the allowance. This is useful where it is not possible to transfer income-producing assets from one spouse or civil partner to the other in order to mop up the personal allowance (see Tip 4).

For 2026/27, the basic personal allowance is £12,570 and the marriage allowance is £1,260. Making use of the marriage allowance will save tax of up to £252 (£1,260 x 20%).

The transferor’s personal allowance is reduced by the amount of the marriage allowance – from £12,570 to £11,310 for 2026/27 – and the transferee’s personal allowance is increased by the amount of the marriage allowance, from £12,570 to £13,830 for 2026/27. Each partner’s tax code is amended – with the M suffix denoting the individual is in receipt of the marriage allowance and the N suffix denoting that the individual has transferred the marriage allowance to their spouse or civil partner.

The allowance cannot be tailored – the only permitted transfer is 10% of the allowance rounded up to the nearest £10 (i.e., £1,260 for 2026/27). Lower amounts are not allowed, so that if a person has income of £12,000 in 2026/27, they cannot simply transfer the balance of their personal allowance of £570 to their spouse or civil partner.

Where the transferor’s income is less than the personal allowance but is more than an amount equal to the personal allowance less the marriage allowance (i.e., between £11,310 and £12,569 for 2026/27), claiming the marriage allowance will still be worthwhile and will save tax, but the saving will be less than £252. The transferee will save £252, but the transferor will pay tax to the extent that his or her income exceeds their reduced personal allowance – £11,310 for 2026/27, being the personal allowance of £12,570 less the marriage allowance transferred of £1,260.

Note: the personal allowance is due to remain at £12,570 and the marriage allowance will remain at £1,260 for tax years up to and including 2030/31.

The marriage allowance must be claimed. This can be done online on the GOV.UK website.

Make Use Of The Marriage Allowance

Josh and Hannah are married. Hannah does not work as she stays at home to look after their two-year-old son. Josh earns £20,000 a year. They claim the marriage allowance to transfer £1,260 of Hannah’s personal allowance for 2026/27 to Josh. As a result, Hannah’s personal allowance is reduced to £11,310 (£12,570 – £1,260) and Josh’s personal allowance is increased to £13,830 (£12,570 + £1,260). By making the transfer, Josh pays £252 (£1,260 x 20%) less tax.

Harry has income from freelance work of £12,000 in 2026/27. His wife Lily has income of £18,000 from her job as a teaching assistant.

As Harry is unable to utilise £570 of his personal allowance for 2026/27, the couple claim the marriage allowance. Lily’s personal allowance is increased to £13,830 and her tax bill is reduced by £252 (£1,260 x 20%). Harry’s personal allowance is reduced to £11,310 and, as a result, he must now pay tax on £690 of his income (£12,000 – £11,310), a tax bill of £138 (£690 x 20%). By claiming the marriage allowance, the couple are £114 better off (£252 saved by Lily less the £138 additional tax payable by Harry).