HMRC Boosts Tax-Free Income to £13,830 for Eligible UK Households

HMRC has confirmed that some UK households can now benefit from a raised tax-free threshold of £13,830, thanks to the Marriage Allowance.

This means certain couples can transfer part of one partner’s unused Personal Allowance to the other, allowing the higher-earner to earn more before paying income tax.

This change can reduce tax bills by up to £252 per year, and couples can even backdate claims several years. Here’s everything you need to know about eligibility, figures, how to claim, and who benefits.

What is the New £13,830 Tax-Free Amount?

• The Personal Allowance for 2025/26 is £12,570. That’s the amount an individual can earn tax-free.
• Under Marriage Allowance, one partner (the lower-earner), who does not pay tax because they earn less than the Personal Allowance, can transfer 10% of that allowance, i.e. £1,260, to their spouse or civil partner.
• The receiving partner’s Personal Allowance is increased by that £1,260, meaning they can earn £13,830 tax-free (i.e. £12,570 + £1,260).

Eligibility Criteria

Criterion	Required Condition
Marital status	Must be married or in a civil partnership.
Lower-earner income	Must earn less than £12,570 in the tax year (so they pay no income tax).
Higher-earner status	Must be a basic-rate taxpayer (i.e. income between £12,571 and £50,270) in England, Wales, or Northern Ireland; in Scotland the corresponding limits are different.
Age requirement	Both partners must have been born on or after 6 April 1935, otherwise other allowances (like Married Couple’s Allowance) may apply.
Backdating eligibility	You can claim for the current tax year and backdate up to 4 previous tax years if you met criteria then.

Financial Gains: Figures & Examples

• Maximum tax saving per year: £252 (20% of £1,260).
• Total possible rebate/relief if backdating 4 years + current: up to £1,258 – £1,260 depending on rounding.
• Example: Partner A earns £6,000 (non-taxpayer), Partner B earns £30,000 (basic rate). After transfer, Partner B’s tax-free allowance becomes £13,830, reducing taxable income accordingly (from £30,000 − £12,570 to £30,000 − £13,830). Savings ≈ £252/year.

How to Apply

1. The lower-earning spouse/partner must apply – often called the “transferor.”
2. Application can be done online via HMRC for the current tax year. To backdate previous years, you may need to use a paper form (MATCF).
3. Once approved, tax codes are adjusted:
   • The recipient partner gets a tax code reflecting the increased Personal Allowance.
   • The donor partner has their allowance reduced accordingly.
4. Keep HMRC informed if your circumstances change (e.g., income passes the threshold, relationship ends). Eligibility depends on the tax year.

Who Benefits Most

• Married couples or civil partners where one partner is a non-taxpayer and the other pays basic rate tax.
• Households where one partner has sporadic, low income or earns below £12,570 (for 2025/26).
• Senior citizens who receive only a state pension and low other income.
• Any couple who missed claiming in earlier years can retrieve backdated amounts (up to four years).

Risks / Things to Check

• If the lower-earner starts earning just above £12,570, they may become a taxpayer, reducing benefit.
• If the higher-earner goes into higher rate bands (> £50,270 in England/Wales/NI), they may no longer qualify.
• Some couples may find the cost of the transfer outweighs the benefit if incomes shift. Always calculate both sides.

The increase to a £13,830 tax-free threshold for some households via the Marriage Allowance is a welcome boost for couples where one earns below the Personal Allowance and the other is a basic-rate taxpayer.

Though the underlying Personal Allowance remains £12,570, transferring £1,260 boosts what the higher earner can earn tax-free.

FAQs