Marriage allowance (UK income tax)
Marriage allowance permits an eligible spouse or civil partner to transfer a fixed amount of their personal allowance to the other, subject to the applicable income-tax conditions. The recipient receives a tax reduction rather than an unrestricted additional personal allowance. For 2025–26 the transferable amount is £1,260, giving a reduction of up to £252; the transferor’s allowance is reduced, so any extra tax they pay must be considered. It is distinct from the married couple’s allowance.
Worked example
For 2025–26 an eligible couple elects to transfer £1,260. If the transferor has enough unused allowance and the recipient has at least £252 income tax to reduce, the reduction is £1,260 × 20% = £252 and the couple saves £252 overall.
Common mistake
Assuming the election always saves the full £252 for the couple, or confusing marriage allowance with the separate married couple’s allowance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |