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Gloucestershire Business News

Claim Marriage Allowance couples urged

It may not be a lot, but married couples and those in civil partnerships, are reminded that they can save up to £252 a year in Income Tax by using their 'Marriage Allowance'.

HM Revenue and Customs (HMRC) is urging nearly 1.8 million eligible couples to take advantage of the scheme.

Marriage Allowance allows couples to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570 and the other is a basic rate taxpayer.

Summer is traditionally a popular season for weddings and newly married couples, or those in civil partnerships, could be eligible for the tax saving. And even those who have been married for years may benefit because of a change in circumstances.

They can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2021/22. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220.

It is free to apply for Marriage Allowance and the easiest way for taxpayers to check eligibility and make a claim to receive 100% of the relief they are entitled to is via GOV.UK.

Angela MacDonald, HMRC's Deputy Chief Executive and Second Permanent Secretary, said: "Marriage Allowance lets eligible couples share their Personal Allowances and reduce their tax by up to £252 a year. Nearly 1.8 million couples are already using the service - it is free, quick and easy to apply, just search 'marriage allowance' on GOV.UK."

Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance, including:

• A recent marriage or civil partnership

• One partner has retired and the other remains working

• A change in employment due to COVID-19

• A reduction in working hours which means their earnings fall below their Personal Allowance

• Unpaid leave or a career break, or

• One partner is studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2017, the surviving person can still claim by contacting the Income Tax helpline.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.

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