It’s possible that you could be eligible for a married couple’s allowance if one of you was born before the 6th of April 1935 and you’re married or in a civil partnership (MCA). Discover the inner workings of MCA right here.

What is the budget for the married pair to work with?

The married couple’s allowance will not result in an increase in the amount of income that can be received without being subject to taxation. Instead, it counts as a “limited” allowance, which lowers your tax payment by ten percent of the amount of the allowance to which you are entitled.

If you obtain the minimum allowance of £3,640 in the 2022-23 tax year, which is an increase from the £3,530 you received in the 2021-22 tax year, this will result in a reduction of £364 on your tax bill.

How the allowance for a married couple is calculated

The MCA is only applicable if at least one member of the couple was born prior to April 6, 1935.

The highest MCA allowed for the fiscal year 2022-2023 is £9,415.
The maximum MCA allowed for the fiscal year 2021-2022 was £9,125.

However, if your income is greater than a specific threshold, the allowance for a married couple will be cut by £1 for every £2 of additional income.

The allowance for married couples is subject to both a lower and an upper income limit.

Your income will determine whether you are eligible to receive the maximum amount of the MCA, a reduced amount, or nothing at all.

If your annual income is less than the “lower limit,” which is projected to be £31,400 in 2022-23 and £30,400 in 2021-22, you will be eligible for the entire amount of the benefit.

If you earn more than this specified amount, your eligibility for MCA will be reduced by £1 for every £2 of additional income. However, there is a cap on how much farther it can go; even people with extremely high incomes will still be eligible for the bare minimum of £3,640.

In most cases, the spouse is the one who is awarded MCA. If, on the other hand, you got married or entered into a civil partnership on or after December 5, 2005, the allowance will be granted to the partner who has the higher income (and is also reduced by reference to their income).

If your tax liability is not high enough to use the entirety of the married couple’s exemption, you and your spouse each have the option of transferring the remaining amount to the other.

After the end of the tax year, if you want to transfer MCA, be sure to check the appropriate box on your tax return, or get in touch with your local tax office if you don’t typically fill out a return.

Allowance for marriages

Even though they are not eligible for MCA, married couples who were born after 1935 have the ability to transfer up to £1,260 of their unused personal allowance into a Marriage transferable tax allowance in 2022-23. This is the same amount that they were able to transfer in 2021-22.

If you anticipate earning less than the personal tax allowance of £12,570 in 2022-23, you have the option of transferring any unused allowance to your partner in order to reduce the amount of income tax that they are required to pay, provided that they are a taxpayer at the basic rate.

In our comprehensive guide on marriage allowance, you’ll find additional information.

Allowances for married couples in addition to maintenance relief

If you are paying maintenance payments to your ex-partner, you may be able to lower the amount of taxes you owe by claiming maintenance allowance, which is available to married couples and civil partners.

You or your ex-partner must have been born before 6 April 1935 in order to be eligible for this, and the maintenance payments that you make must be under the terms of a legally binding agreement in order to qualify.

Your tax bill will be lowered by whichever of the following amounts is lower:

10 percent of £3,640 for the 2022-23 school year, compared to 10 percent of £3,530 for the 2021-22 school year
10% of the total amount that you’ve actually paid in total.