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In short
- If one of you earns under £12,570 and the other is a basic rate taxpayer, the lower earner can transfer £1,260 of allowance.
- Worth up to £252 a year. Backdate the 4 previous years as well and it comes to up to £1,260.
- Married or civil partnership only. Not cohabiting.
- Free to apply directly with HMRC.
Who qualifies
- You are married or in a civil partnership.
- One partner's income is below the Personal Allowance.
- The other pays tax at the basic rate, so under £50,270 in England, Wales and Northern Ireland, the starter, basic or intermediate rate in Scotland.
How it works
The lower earner gives up £1,260 of their allowance. The higher earner's code gains an M suffix and £1,260 more tax-free pay, saving £252 at 20%. The lower earner's code gets an N.
Backdating
Claims go back to 2022 to 2023 if you qualified in each year. If your partner has died since 5 April 2022 you can still claim for the years you qualified, by phoning HMRC's Income Tax helpline.
Worked example
A part-time carer earning £9,000 transfers £1,260 to her husband, a warehouse operative on £28,000. He pays £252 less tax this year and receives £1,008 for the four back years, £1,260 in total.
Questions
Does the lower earner lose out?
Only if their income is between £11,310 and £12,570, where a small amount becomes taxable. Usually still a net gain.
Do I need a company to claim it?
No. Apply on gov.uk. We check it as part of a wider claim but you can do this one yourself.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
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