Press release

Registration opens for new married couples tax break

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Registration for the new Marriage Allowance for married couples and those in civil partnerships is now open.

The government has today opened registration for the new Marriage Allowance, a tax break for married couples, helping them save up to £212 a year.

Applying online is straightforward. Couples can register their interest to receive the Allowance now at gov.uk/marriageallowance.

From 6 April 2015, more than 4 million married couples and 15,000 civil partnerships will be eligible for the tax break.

The Allowance means a spouse or civil partner who doesn’t pay tax – therefore is not earning at all or is earning below the basic rate threshold (£10,600) - can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax.

Prime Minister David Cameron said:

I made a clear commitment to the British people that I would recognise marriage in the tax system - so I am delighted that we’re just a little over a month away from it coming into effect.

We can afford to do it because of the growing strength of the British economy.

And as a result, it means families up and down the country can get a little bit of extra support and more financial security.

But this policy is about far more than pounds and pence. It’s about valuing commitment.

Families are the bedrock of our society. It is families who raise our children, look after our old and keep our country going. And this tax change is about saying as a society, we recognise that.

Chancellor of the Exchequer George Osborne said:

We made a promise to introduce a recognition of marriage into our tax system – and now we’re delivering on that promise.

This includes updating the tax system so that it recognises marriage and civil partnerships.

Our new Marriage Allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.

From April, HMRC will contact those who have already registered for the Marriage Allowance to apply. People can register at any point in the tax year and still receive the full benefit of the allowance.

Applying online is simple. One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their Pay As You Earn (PAYE) tax code.

Background:

The Prime Minister, David Cameron, announced the allowance in 2013. Details were published in the Budget 2014