This Valentine’s Day, why not give your beloved the gift of Marriage Allowance and reap the rewards of up to £252 in potential tax savings each year! There's no better way to show your love than to help them keep more of their income.
Over 2 million couples are already benefiting from this romantic allowance, but HMRC estimates that thousands more are missing out. So, don’t let your love fizzle out - if one partner has retired, given up work to look after someone, or has a long-term health condition, then you two could be a match made in tax heaven.
One half of a married couple or civil partnership earning less than the personal tax-free allowance (currently £12,570) can transfer up to £1,260 to the higher earning half of the relationship. The only caveat is that the higher earning half cannot be a 'higher-rate' taxpayer - this means their gross income should be below £50,270.
However, what can make this quite a lucrative Valentine's day present for some is that claims can be 'backdated' up to April 2018.
Backdating the additional 4 years means the £252 a year could turn into a tax saving of up to £1,242.
Eligible people can apply online at GOV.UK at no cost and, after a successful claim, their partner will see a tax saving.
Below is an example of the maximum tax savings per tax year going back 4 years:
Tax Year | Max Tax Saving |
---|---|
2022/23 | £252 |
2021/22 | £252 |
2020/21 | £250 |
2019/20 | £250 |
2018/19 | £238 |