Millions of UK couples qualify for Marriage Tax Allowance — yet many still don’t claim it. According to HM Revenue & Customs (HMRC), over 2 million eligible couples have either never applied or are missing backdated refunds.
This guide is designed to be complete, practical, and current for 2026. It covers:
- Who qualifies (including Scottish tax bands)
- How much you can save
- The £11,310 “cliff edge” trap
- The savings interest “double hit”
- Pension strategies to regain eligibility
- How tax codes M and N work
- Backdating (including claims for deceased spouses)
- How to apply safely (and avoid refund scams)
What Is Marriage Tax Allowance?
Marriage Tax Allowance lets one spouse or civil partner transfer 10% of their Personal Allowance to their partner.
For 2025/26:
- Personal Allowance: £12,570
- Transferable amount: £1,260
- Maximum saving: £252 per year (20% of £1,260)
The Personal Allowance has been frozen at £12,570 since 2021 and is currently set to remain frozen until 2028. This “fiscal drag” means more people are creeping into higher tax bands — sometimes unintentionally losing eligibility.
How Marriage Allowance Works (In Plain English)
- Lower earner transfers £1,260 of their allowance.
- Their Personal Allowance reduces from £12,570 → £11,310.
- The higher earner receives a £252 tax reduction.
Important: It is a tax reducer, not an increase in allowance for the recipient.
Who Qualifies in 2025/26?
You must meet all of these conditions:
- Married or in a civil partnership
- Lower earner earns below £12,570
- Higher earner is a basic-rate taxpayer
- Neither partner pays higher-rate or additional-rate tax
Higher-Rate Thresholds
| Location | Higher Rate Starts At |
|---|---|
| England, Wales, NI | £50,270 |
| Scotland | £43,663 |
Scottish Tax Bands (2025/26)
Scotland operates different income tax bands.
| Band | Taxable Income | Rate |
|---|---|---|
| Starter | £12,571 – £15,397 | 19% |
| Basic | £15,398 – £27,491 | 20% |
| Intermediate | £27,492 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
Common Question:
“I pay 21% in Scotland — am I still eligible?”
Yes.
HMRC treats the Scottish Starter (19%), Basic (20%) and Intermediate (21%) bands as qualifying. You only lose eligibility once you enter the 42% Higher Rate at £43,663.
How Much Can You Save?
Maximum annual saving: £252
You can backdate up to four previous tax years, plus the current year.
For a 2025/26 claim, you can backdate to:
- 2021/22
- 2022/23
- 2023/24
- 2024/25
Maximum possible refund: £1,260
The £11,310 “Cliff Edge” (Where Benefit Shrinks)
After transferring the allowance, the lower earner’s tax-free limit becomes £11,310.
If they earn above that, they begin paying tax.
| Lower Earner Income | Benefit to Higher Earner | Tax Paid by Lower Earner | Net Gain |
|---|---|---|---|
| £0 – £11,310 | £252 | £0 | £252 |
| £12,000 | £252 | £138 | £114 |
| £12,500 | £252 | £238 | £14 |
If the lower earner earns close to £12,570, calculate carefully before applying.
The 2026 Savings Interest Trap (The “Double Hit”)
Eligibility depends on total taxable income, not just salary.
Example (England):
- Salary: £50,000
- Savings interest (outside ISA): £500
- Total income: £50,500
Higher-rate threshold: £50,270
Result:
- Becomes higher-rate taxpayer
- Loses £252 Marriage Allowance
- Personal Savings Allowance drops from £1,000 to £500
This is a “double tax hit.”
Always include savings interest, rental income, and dividends when checking eligibility.
Pension Strategy to Regain Eligibility
If the higher earner slightly exceeds the threshold, pension contributions can reduce Adjusted Net Income.
Requalification Formula
P=I−T+1P = I – T + 1
Where:
- I = Income
- T = Threshold
- P = Pension contribution required
Example
Income: £51,000
Threshold: £50,270
Required pension contribution:
£731
That restores basic-rate status and unlocks the £252 allowance.
Self-Employed: How the £252 Is Applied
If the higher earner is self-employed:
- No PAYE tax code change
- The £252 is deducted from the 31 January Self Assessment bill
Check your tax calculation before paying.
Tax Codes Explained (M and N)
Once approved:
- M = You receive the allowance
- N = You have transferred your allowance
Example:
- 1257L → 1383M (recipient)
- 1257L → 1131N (transferor)
You can check your tax code via your account on GOV.UK or using the official app from HM Revenue & Customs.
How to Apply (Free and Direct)
Apply only via GOV.UK.
You’ll need:
- Both National Insurance numbers
- ID verification
- Income details
Approval adjusts tax codes automatically.
Claiming for a Deceased Spouse
If your spouse or civil partner has died:
- You can still claim for years they were alive and eligible
- Backdating (up to four years) is allowed
- The executor of the estate can make the claim
This can result in up to £1,260 payable to the estate.
Divorce or Separation
If you separate or divorce, the allowance must be cancelled.
Scam Warning (2026 Reality)
Many companies offer to “claim your refund” for 30–50% commission.
You do not need them.
Applying directly through GOV.UK is:
- Free
- Fast
- Automatic for backdating
Never pay someone for something that takes minutes yourself.
When to Check Each Year
January:
Self-employed couples should confirm the deduction appears in their Self Assessment bill.
March / Early April:
PAYE employees should check their tax code before the new tax year begins.
Quick 2025/26 Summary
- Transfer amount: £1,260
- Maximum annual saving: £252
- Maximum refund (5 years): £1,260
- Lower earner full-benefit zone: under £11,310
- England higher-rate limit: £50,270
- Scotland higher-rate limit: £43,663
FAQs
Q. Who qualifies for Marriage Tax Allowance in 2025/26?
You qualify if you are married or in a civil partnership, one partner earns below £12,570, and the other is a basic-rate taxpayer. The higher earner must earn below £50,270 in England, Wales or Northern Ireland, or below £43,663 in Scotland. Both partners must be UK taxpayers.
Q. How much is Marriage Tax Allowance worth in 2025/26?
The maximum saving is £252 per year. You can also backdate your claim up to four previous tax years, meaning the total refund could reach £1,260 if you were eligible for all years.
Q. Can I claim Marriage Allowance if I live in Scotland?
Yes — as long as the higher earner does not enter the 42% Scottish Higher Rate band (which starts at £43,663 in 2025/26). Paying the 19%, 20%, or 21% Scottish rates still qualifies as basic-rate for this allowance.
Q. Does savings interest affect Marriage Tax Allowance eligibility?
Yes. Eligibility is based on total taxable income, not just salary. If savings interest pushes the higher earner above the higher-rate threshold (£50,270 in England or £43,663 in Scotland), you lose the £252 allowance and your Personal Savings Allowance may also reduce.
Q. How do I apply for Marriage Tax Allowance and how long does it take?
You apply online through GOV.UK using your National Insurance numbers and Government Gateway login. Most applications are processed within a few weeks. If approved, your tax code changes automatically (M for recipient, N for transferor) and any backdated refund is paid directly to you.
Final Words
Marriage Tax Allowance won’t transform your finances — but it’s consistent, legitimate tax relief.
In 2026, the main risks are:
- Fiscal drag pushing income over thresholds
- Scottish higher-rate confusion
- Savings interest tipping you into higher-rate
- Lower earners near £12,570 reducing the net benefit
If you qualify comfortably, claim it.
If you’re near the margins, calculate first.
Either way, apply directly through GOV.UK — and keep the full refund for yourselves.
Related: What Is Taxpayer ID? Examples, Types & How to Apply (US & UK 2026 Guide)
