Married Couple's Allowance

Married couples and civil partners have the option to transfer 10% of their UK personal allowance to their partner if circumstances allow and it is efficient to do so.

As an example, if one partner has no income, or income below personal allowance, transfer of 10% of their allowance to their partner results in a tax benefit to the couple overall to the value of 20% of the transfer at current tax rates. The ability to transfer is restricted by the level of income received by the higher earner and cannot be carried out if the amount of income is sufficient to enter a higher rate tax band.

Enactment of the allowance can be carried out by contacting HMRC direct via the online application, or there is a facility to enable it on a self-assessment tax return.