Two million couples are overlooking completely legitimate ways to earn tax-free income
Across Britain, an estimated two million married couples are quietly passing over a tax relief that is legally theirs to claim. The Marriage Allowance, which permits a lower-earning partner to transfer unused tax-free income to the other, offers up to £252 in annual savings — and up to £1,260 when backdated across four years. In an era of frozen thresholds and creeping fiscal drag, this unclaimed relief speaks to a broader truth: the distance between entitlement and awareness can cost ordinary households dearly.
- Two million eligible couples are leaving up to £1,260 on the table simply because they do not know the Marriage Allowance exists or applies to them.
- Frozen Personal Allowance thresholds — locked at £12,570 until 2031 — are quietly pulling more households into higher tax burdens through fiscal drag, making every available relief more urgent.
- The backdating window is closing year by year: claims can only reach back to 2021-22, meaning each passing tax year permanently erases another £252 in recoverable savings.
- Scammers have built convincing imitation websites to exploit those who do search for help, adding a layer of risk to an otherwise straightforward online claim process.
- Financial experts are urging eligible couples — including retirees and those who stepped back from work to raise children — to use the official government calculator and act before more years slip away.
Two million married couples are walking past money that is legally theirs. The Marriage Allowance — a tax relief scheme available for years — could return up to £1,260 through backdated claims, yet the vast majority of eligible households have never used it.
The mechanics are simple. If one partner in a marriage or civil partnership earns less than £12,570 a year, they can transfer their unused Personal Allowance to the other, saving the higher earner £252 annually. Because claims can be backdated up to four years, couples could recover the full amount in a single application — requiring only both national insurance numbers and ID, submitted online.
The stakes are sharpened by fiscal drag. The Personal Allowance has been frozen at £12,570 since 2021 and will remain so until at least 2031. As wages rise with inflation, more workers find themselves paying tax on income that has not meaningfully grown in real terms. For couples where one partner has reduced their hours, been made redundant, or left work to raise children, the Marriage Allowance is a direct counterweight to that squeeze.
To qualify, one partner must earn below £12,570 while the other falls within the basic rate tax band — between £12,570 and £50,270 after pension contributions. A recent adjustment also allows those earning between £11,310 and £12,570 to transfer their allowance, though the saving is smaller.
Laura Suter of AJ Bell notes that many households simply do not realise what is available to them, including retired couples who remain eligible. She warns, however, that scammers have created convincing imitation websites designed to harvest personal data, and urges people to use only the official government calculator.
The backdating window is firm and shrinking. With the Personal Allowance frozen until 2031, the Marriage Allowance remains one of the few levers couples can pull — but only if they act before more eligible years pass beyond reach.
Two million married couples are walking past money that's legally theirs. The Marriage Allowance—a tax relief scheme that's been quietly available for years—could put up to £1,260 back in their pockets through backdated claims, yet the vast majority of eligible households aren't using it.
The mechanics are straightforward. If you're married or in a civil partnership and one of you earns less than £12,570 a year—the current Personal Allowance threshold—that partner can transfer their unused tax-free earnings to the other. The result: £252 in annual tax savings for the higher earner. Because the government allows claims to be backdated up to four years, a couple could recover the full four years' worth in one go, totaling £1,260. The claim can be made online with nothing more than both national insurance numbers and ID.
Why does this matter now? The Personal Allowance has been frozen at £12,570 since 2021 and won't move until 2031 at the earliest. As wages rise with inflation, more workers find themselves earning above that threshold and paying tax on income that, in real terms, hasn't grown. This phenomenon—called fiscal drag—is quietly pushing more people into the tax system and fattening bills across the board. For couples where one partner has stepped back from work, been made redundant, or stopped earning to raise children, the Marriage Allowance is a direct counterweight to that squeeze.
To qualify, one partner must earn nothing or less than £12,570. The other must be a basic rate taxpayer, meaning they earn between £12,570 and £50,270 after pension contributions are deducted. A minor adjustment introduced for the 2024-25 tax year allows those earning between £11,130 and £12,570 to transfer their allowance as well, though the savings are smaller. The transferred allowance lifts the higher earner's tax-free threshold from £12,570 to £13,830.
Laura Suter, director of personal finance at AJ Bell, points out that many households simply don't realize what's available to them. "More people are being dragged into paying higher levels of tax, largely due to frozen allowances and thresholds that haven't kept up with inflation," she said. "But at the same time, many households are overlooking completely legitimate ways to earn tax-free income, simply because they don't realise what's available." She notes that even couples where one partner is retired can claim the relief, and that the process is straightforward enough to do online.
The window for backdating is firm: claims can reach back to the 2021-22 tax year, making 2020-21 no longer eligible. But anyone who was eligible in any of the past four years and hasn't claimed can still recover that money. Suter urges people to use the official government calculator to check eligibility and to be wary of impostor websites offering to help—scammers have created convincing fakes designed to harvest personal information.
With the Personal Allowance locked in place until 2031, the Marriage Allowance stands as one of the few levers available to couples trying to ease the tax burden. For two million households that haven't claimed it, the question is whether they'll act before more years slip past.
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More people are being dragged into paying higher levels of tax, largely due to frozen allowances and thresholds that haven't kept up with inflation. But many households are overlooking completely legitimate ways to earn tax-free income, simply because they don't realise what's available.— Laura Suter, director of personal finance at AJ Bell
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Why hasn't this scheme been more widely taken up if it's so straightforward?
People don't know it exists. Tax relief schemes don't advertise themselves, and if you're not actively looking, you won't find it. The government doesn't send letters saying "you could save £252." You have to go looking.
Is there a catch? Why would the government allow this?
It's not really a catch—it's a policy choice. The government decided that married couples and civil partners should be able to pool their tax-free allowance. It's been there for years. The catch is that it requires one partner to earn almost nothing, which is a narrower situation than it sounds.
What about couples where both partners earn decent money?
They don't qualify. Both need to be earning, and one needs to be below the threshold. If you're both working full-time, this won't help you. It's really for households where one person has stepped back—to raise kids, care for a parent, or because they lost their job.
The frozen allowance until 2031—that's a long time. What does that actually mean for people?
It means your tax-free earnings don't grow with your salary. If inflation pushes your wages up but the threshold stays still, you're paying tax on money that's really just keeping pace with the cost of living. More of your paycheck goes to tax, even though you're not actually better off.
Can you backdate indefinitely, or is there a real limit?
Four years is the limit. So if you're claiming now, you can go back to 2021-22. Anything before that is gone. It's worth checking old tax years quickly if you think you might have qualified.
What's the actual barrier to claiming? Is it just awareness?
Mostly, yes. Some people might worry about the process or think it's too complicated. But it's genuinely simple—you need your national insurance numbers and ID, and you can do it online. The real barrier is that nobody tells you it exists.