Couples encouraged to say: ‘I do’ to tax break of up to £900 on Valentine’s Day

Married couples and those in civil partnerships are being encouraged on Valentine’s Day to sign up for tax breaks under the Marriage Allowance.

More than 3.5 million couples are already benefiting from Marriage Allowance, which was introduced in April 2015 – but many couples who could be eligible for cash are missing out.

HM Revenue and Customs (HMRC) estimates around 700,000 couples are still eligible for the free tax break worth up to £238 this year.

If their claim is backdated, they could receive a lump sum of up to £900.

The Marriage Allowance allows lower income workers to transfer £1,190 of their Personal Allowance to their husband, wife or civil partner – if their income is higher. This reduces their tax by up to £238 for 2018/19 tax year.

Couples can generally benefit if there is a lower earner whose income is under the tax-free Personal Allowance (usually £11,850) while their partner pays tax at the basic rate, which usually means their income is between £11,851 and £46,350.

In Scotland, the higher earning partner must pay the starter, basic or intermediate rate, which usually means their income is between £11,850 and £43,430.

The personal tax allowance is increasing to £12,500 in April 2019.

The increase in non-taxable earnings means eligible couples will be able to transfer up to £1,250 from the lower income to the higher income earner – reducing their tax by up to £250 a year.

Financial Secretary to the Treasury Mel Stride said: “For more than 3.5 million married couples and those in a civil partnership, we are putting up to £238 this year back into their wallets, and it is encouraging to see so many people taking advantage of the tax relief.

“Married couples who are yet to sign up for this great scheme – you too can benefit – it is quick to register and any back-dated allowances will be paid as a lump-sum.”

Couples can find out more and apply for the Marriage Allowance at gov.uk.

The call came as the Law Society of England and Wales warned that unmarried couples should not just assume that long-term cohabitation leads to legal rights which can protect their finances.

Law Society president Christina Blacklaws said: “If one partner dies without naming the other in their will, their estate will pass to their next of kin, usually a close family member, and their partner can be left without a legal claim to their partner’s estate and their shared home.

“Separation becomes even more complicated when children are involved and with more and more couples opting for cohabitation, it is vitally important to dispel the ‘common law’ myth.

“There are many options for cohabiting couples including cohabitation agreements, shared property ownership and updating their will to name their partner as a beneficiary.

“Long-term cohabiting couples and those considering moving in together should give their partner the gift of security this Valentine’s and seek legal advice to ensure they are protected.”