The Marriage Allowance is a tax incentive put in place by the Government that can be helpful for married or civil partners couples, particularly if one partner or spouse is a lower earner.

It lets individuals transfer £1,260 of their Personal Allowance to their husband, wife or civil partner, which can reduce their tax by up to £252 in the tax year depending on income.

HM Revenue and Customs (HMRC) says only around half the couples who are eligible actually claim it.

This leaves 2 million couples losing out on savings worth hundreds.

To benefit as a couple, the lower earner must normally have an income below their Personal Allowance – this is usually £12,570.

People can calculate how much tax they could save as a couple online. They can call the Income Tax helpline instead if they receive other income such as dividends, savings or benefits from their job.

Couples can also call if they do not know what their taxable income is.

When one transfers some of their Personal Allowance to their husband, wife or civil partner, they might have to pay more tax themselves, but they could still pay less as a couple.

Eligibility for Marriage Allowance

Individuals can benefit from Marriage Allowance if all the following apply:

• they’re married or in a civil partnership
• they do not pay Income Tax or their income is below their Personal Allowance (usually £12,570)
• their partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance

Couples cannot claim Marriage Allowance if they’re living together but they’re not married or in a civil partnership.

How to claim Marriage Allowance

People can apply for Marriage Allowance online on the Government website.

If both of them have no income other than their wages, then the person who earns the least should make the claim.

If either of them gets other income, such as dividends or savings, they may need to work out who should claim.

Changes to one’s Personal Allowances will be backdated to the start of the tax year (April 6) if the application is successful.