HMRC is trying to encourage married couples and people in civil partnerships to sign up for their tax break!
Marriage Allowance offers individuals the chance to transfer part of their Personal Allowances to their husband, wife or civil partner, which could reduce their tax bill by up to £250 a year. For some couples, this could mean a backdated payment of up to four years of claims, which could be as much as £1,188.
Marriage Allowance lets people earning £12,500 or less transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher and they are a basic rate taxpayer. This will reduce their tax by up to £250 for the 2020 to 2021 tax year. Claims can also be backdated to April 2016 until 5 April 2021. After 6 April 2021, couples will only be able to claim back to the 2017 to 2018 tax year.
The same criteria apply for people in married couples and civil partnerships in Scotland, except your partner, must pay Income Tax at the starter, basic or intermediate rates between £12,501 and £43,430.
The Personal Allowance rate for the 2021 to 2022 tax year is increasing to £12,570.