How Do I Cancel Marriage Allowance? 

Are you considering canceling your marriage allowance but unsure if it’s the right step? You may have gone through a recent change, like a separation, an income shift, or even the loss of a partner. As a result, the allowance becomes less beneficial or no longer relevant to your situation. 

Marriage allowance was introduced on April 6, 2015, and lets you save tax. One partner can transfer a portion of their personal allowance to the other, reducing the couple’s overall tax bill. However, for couples now realizing they qualify, you can backdate claims up to four years. 

In this guide, we’ll walk through the steps to cancel the marriage allowance. So read it and get an answer to your question: how do I cancel marriage allowance?

What Is Marriage Allowance? 

Marriage allowance is a UK tax benefit specifically for married couples and those in civil partnerships. It allows one partner to transfer up to 10% of their personal allowance to the other, providing potential tax savings of up to £252 per year. 

To qualify for marriage allowance, one partner needs to have an income below the personal allowance threshold (£12,570 in the 2023/24 tax year). However, the other must be a basic rate taxpayer, meaning they earn no more than £50,270. 

Both partners should also have been born on or after April 6, 1935, to qualify. If these conditions apply, you can apply for marriage allowance online through the HMRC portal, with claims backdated up to four years to maximize your benefit.

How to Cancel Marriage Allowance? 

Canceling your marriage allowance may be necessary for several reasons, including separation, changes in income, or the unfortunate death of a partner. 

Here’s how you can cancel the marriage allowance:

Canceling by Phone

You can cancel your marriage allowance using the most direct method, which is to call HMRC. Dial 0300 200 3300 (or +44 135 535 9022 if you’re calling from outside the UK) during their business hours: Monday to Friday, 8 am to 6 pm. 

You’ll need to provide both your National Insurance number and your partner’s, so keep those ready. Explain your reason for canceling, such as the change in your relationship status, income, or other circumstances. Afterwards, HMRC will guide you through the next steps.

Canceling by Post

If you prefer not to call, you can also cancel by writing to HMRC. In your letter, include:

• Your full name and address
• Your National Insurance number
• Your partner’s National Insurance number
• A brief explanation for canceling marriage allowance

You can find the address on your tax return or use HMRC’s contact resources online to confirm where to send your letter. Once they receive and process it, they will update your tax code and that of your partner to reflect the change. 

Canceling by post may take several weeks, so try this method only if you have sufficient time.

Canceling Online

For a faster option, you can cancel the marriage allowance through your online HMRC account. Once logged in, go to the marriage allowance section, where you’ll find options for managing your account. 

To confirm your identity, HMRC will ask you to verify details they hold on file, like recent tax data. After completing this process, HMRC will update your records and stop the marriage allowance.

Canceling online can be the quickest and easiest choice, especially if you already have an HMRC online account set up. Just keep in mind that once you cancel, you won’t be able to reapply unless your circumstances change again.

What Happens When You Cancel Your Marriage Allowance? 

Canceling your marriage allowance will affect your tax code immediately, stopping the benefit and likely increasing your overall tax. 

Here’s what usually happens after cancel your marriage allowance:

Tax Code Adjustment

HMRC will adjust your and your partner’s tax codes, potentially increasing the amount of tax owed. This will take effect from the date of cancellation until the end of the current tax year.

Communication with Partner

Since marriage allowance impacts both parties’ tax codes, make sure your partner knows about the cancellation, especially if it’s tied to a relationship change or income adjustment. They may see the impact on their paychecks directly.

Specific Scenarios

• Divorce or Separation: If you’re canceling due to separation, HMRC can sometimes backdate this to the start of the tax year (April 6). It might impact any tax calculations and may result in owed tax for you or your partner.
• Temporary Income Changes: If canceling due to temporary income changes, remember that the marriage allowance is locked for the tax year. You might want to wait for the next tax year to adjust, if possible.

Does Your Marriage Allowance Automatically Get Canceled if You or Your Partner Dies? 

Yes, marriage allowance automatically ends upon the death of one partner. When a spouse or civil partner passes away, HMRC updates the surviving partner’s tax code to reflect this change, resulting in the marriage allowance getting canceled. 

However, the surviving spouse may still find some relief by claiming any unused personal allowance from their late partner, which can help reduce their tax bill during this difficult time.

To make this claim, the surviving partner should contact HMRC and provide essential details like the date of death. HMRC will use this information to adjust the tax code and apply any remaining personal allowance if applicable. 

Conclusion 

The marriage allowance is a big benefit for many UK couples, yet there are times when canceling makes practical sense. Whether it’s due to relationship changes, income adjustments, or unfortunate circumstances, knowing the cancellation process can keep your tax obligations on track.

If you’re uncertain about the best course of action, reach out to HMRC or a tax advisor to make sure you’re making the right choice. Staying informed about marriage allowance changes will keep your finances in order, providing peace of mind.

If you have further questions on how do I cancel marriage allowance or other tax benefits, don’t hesitate to explore HMRC’s resources or consult a professional.