If you’re married or in a civil partnership, you may be able to reduce your household tax bill by claiming Marriage Allowance or, in some cases, the Married Couple’s Allowance (MCA).
Marriage Allowance
Marriage Allowance, also known as the transferable tax allowance, allows one partner to transfer £1,260 of their Personal Allowance to their spouse or civil partner for the 2026/27 tax year.
To qualify:
- You must be married or in a civil partnership.
- The partner transferring the allowance must have unused Personal Allowance.
- Neither partner can pay Income Tax above the Basic Rate (or above the 21% Intermediate Rate in Scotland).
It’s also worth remembering that dividend income is taken into account when determining which Income Tax band you fall into.
Married Couple’s Allowance (MCA)
If one of you was born before 6 April 1935, you may instead qualify for the Married Couple’s Allowance, which is often more valuable than Marriage Allowance.
For the 2026/27 tax year, the full allowance is £11,700. Rather than increasing your Personal Allowance, it reduces your Income Tax bill by 10% of the allowance, giving a maximum tax reduction of £1,170.
The allowance is reduced where income exceeds the annual limit, which is £39,200 for the 2026/27 tax year. The rules on whose income is assessed depend on whether you were married before or after 5 December 2005, so professional advice can be worthwhile.
If you’re unsure which allowance applies to you, or whether you’re claiming everything you’re entitled to, we’re always happy to help.
