HMRC have published an issue briefing about the new marriage allowance which will enable married couples and civil partners to apply for an annual tax reduction of up to £212. Eligible couples are now able to register their interest on GOV.UK and will be invited to formally apply online after 6 April. The allowance starts from 6 April 2015.

Eligible couples are married couples or couples in a civil partnership where the lower-paid individual does not have sufficient income to use all their personal allowance (£10,600 for 2015/16) and the higher-paid individual is a basic rate taxpayer, i.e. has taxable income of less than £42,385 for 2015/16.

The marriage allowance, 10% of the personal allowance - £1,060 for 2015/16 – can be transferred to the higher income spouse/partner, saving a maximum of £212 in income tax. Note that this is not an extra allowance but a way of sharing the individual personal allowance.