Despite an extensive, targeted publicity campaign, less than a quarter of those eligible have applied for the marriage allowance, and are missing out on the chance to reduce their tax bill by up to £220 a year, according to HMRC’s own figures
The marriage allowance, which was introduced in 2015, lets an individual transfer £1,100 of their personal allowance to their husband, wife or civil partner, if they are the higher earner.
To benefit as a couple, the lower earner must have an income of £11,000 or less, and their partner’s income must be between £11,001 and £43,000.
HMRC guidance states that anyone eligible for marriage allowance in the 2015 to 2016 tax year, can backdate their claim to 6 April 2015 and reduce the tax paid by up to £432.
A report produced by the Office for Budget Responsibility earlier this year found that the take-up of the transferable marriage allowance has been much lower than initially assumed.
The report stated: ‘We have incorporated a take-up rate of 12% for 2015-16 compared with over 70% in the original costing. We assume that take-up eventually rises to around 50% by the end of the forecast period.’
However, Jane Ellison, financial secretary to the Treasury, has now revealed that only just over one million of the 4.2m couples eligible for the marriage allowance have so far made a successful claim. The figures came in a written response to a question in the House of Commons from Tim Farron, the Liberal Democrat leader.
Farron said: ‘When the Conservatives demanded to introduce their allowance, Liberal Democrats said that it was a needless gimmick. These figures show that their plan is indeed a pathetic failure.
‘Unsurprisingly, it turns out that people don’t choose to get married in order to secure a tax break. Rather than spending taxpayer’s cash trying to promote their flop, the Tories should abandon the policy and put the money into something useful.’
In a statement, HMRC said: ‘We are stepping up our marketing campaign to ensure couples do not to miss out on this marriage tax break. Couples have up to four years to claim backdated annual allowances and we have simplified the application process so that families do not miss out.’
