Couples May Reclaim £1,260 in Unclaimed Tax Savings
About two million married couples are missing out on a government tax break. Many couples can reclaim up to £1,260 of unclaimed tax savings by applying.
How the relief operates
The scheme lets one partner transfer part of their unused Personal Allowance. That transfer is worth £1,260 a year.
Transferring the allowance cuts tax by 20% of that amount. That equals a maximum saving of £252 each year.
Who qualifies
One partner must earn below the Personal Allowance threshold. That threshold is £12,570 for the current tax years.
The other partner must be a basic-rate taxpayer. In practice they should earn between £12,570 and £50,270 after pension deductions.
A 2024-25 change lets some people earning between £11,130 and £12,570 transfer part of their allowance. Their income in that band still attracts tax, but a transfer can still reduce the household bill.
Why the relief matters now
The Personal Allowance has been frozen at £12,570 since 2021. The government has extended the freeze until at least 2031.
When thresholds stay fixed, fiscal drag pushes more people into higher tax bands. Basic rate remains 20%. Higher rate starts at £50,270 at 40%. Additional rate begins above £125,000 at 45%.
Backdating and practical steps
Claimants can backdate applications for up to four tax years. That allows a potential refund of up to £1,260.
Claims cover the current year plus the four previous years, stretching back to 2021-22. The 2020-21 year is now outside the window.
HMRC updates tax codes after a successful claim. The refund may arrive through adjustments to pay or tax code changes.
How to apply
- Check eligibility using the official GOV.UK calculator.
- Apply online through HMRC. You will need both national insurance numbers.
- Have photographic ID ready for verification if asked.
Expert advice and cautions
Laura Suter, AJ Bell director of personal finance, warns people to check entitlements. She notes that many households overlook simple tax-saving steps.
Claimants should use only official government pages. Scam websites that mimic HMRC have appeared online.
Who benefits
The relief suits couples where one partner has stopped working or reduced hours. It also helps households with a retired partner.
Filmogaz.com reported this guidance on 5 April 2026. The article was prepared by Alex Evans and Niamh Kirk.
