HMRC Encourages Married Couples to Claim Marriage Allowance Tax Relief

HMRC urges married couples and civil partners to claim the Marriage Allowance, a tax relief that can save them up to £252 per year. Eligible couples can apply online or by phone and backdate claims for up to four previous tax years.

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HMRC Encourages Married Couples to Claim Marriage Allowance Tax Relief

HMRC Encourages Married Couples to Claim Marriage Allowance Tax Relief

HM Revenue and Customs (HMRC) is urging married couples and those in civil partnerships to claim the Marriage Allowance, a tax relief that could save them up to £252 per year. The Marriage Allowance allows eligible couples to transfer 10% of their personal tax allowance to their partner, reducing their overall tax liability.

Why this matters: This tax relief can provide a significant financial boost to eligible couples, especially during times of rising living costs. By claiming the Marriage Allowance, couples can better manage their finances and allocate their income more effectively, ultimately contributing to greater economic stability.

To be eligible for the Marriage Allowance, one partner must earn less than £12,570 per year, while the other must earn between £12,571 and £50,270. Couples can apply for the allowance online through the HMRC website or by phone. HMRC is encouraging all eligible couples to take advantage of this tax relief to ensure they receive the financial support they are entitled to.

The Marriage Allowance was introduced in April 2015 as a way to support married couples and civil partnerships where one partner earns significantly less than the other. By transferring a portion of their unused personal allowance, the lower-earning partner can reduce their partner's tax bill by up to £252 in the 2023-24 tax year.

According to HMRC, over 2 million couples have already claimed the Marriage Allowance since its introduction, but many more are still eligible. "We want every eligible couple to benefit from Marriage Allowance tax relief. Checking eligibility and applying is quick and easy, and could put extra cash in your pocket," said Angela MacDonald, HMRC's Deputy Chief Executive.

Couples can backdate their Marriage Allowance claims for up to four previous tax years, potentially receiving a lump-sum payment of over £1,000. The tax relief will then be automatically applied to their future tax bills. With the cost of living rising, the Marriage Allowance provides a welcome financial boost for eligible couples.

HMRC's call for eligible couples to claim the Marriage Allowance comes as part of a broader effort to ensure taxpayers are aware of and receiving all the tax reliefs and benefits they are entitled to. The tax authority encourages couples to check their eligibility and apply for the allowance as soon as possible to start benefiting from the annual tax savings of up to £252.

Key Takeaways

  • Married couples & civil partners can claim Marriage Allowance, saving up to £252/year.
  • Eligibility: one partner earns <£12,570, other earns £12,571-£50,270.
  • Couples can apply online or by phone through HMRC.
  • Claims can be backdated up to 4 years, potentially receiving £1,000+.
  • HMRC encourages eligible couples to apply to receive annual tax savings.