While the UK State Pension has seen increases recently, many retirees are still feeling the pinch of 2026’s rising utility bills and grocery costs. However, a little-known HMRC rule regarding the Marriage Allowance is leaving hundreds of pounds on the table for couples who fail to claim it.
If you or your partner are among the millions receiving a state pension, you could be entitled to a tax-free allowance boost that not only lowers your future bills but could trigger an immediate refund of up to £1,256.
The Secret: What is the Marriage Allowance?
The Marriage Allowance allows a person who earns less than the Personal Allowance (currently £12,570) to transfer 10% of that allowance to their spouse or civil partner.
In the context of retirement, this usually happens when one partner has a smaller private pension or only the state pension, while the other partner has a slightly higher income that is subject to the basic tax rate. By “gifting” £1,260 of your unused allowance, you reduce your partner’s tax bill by up to £252 per year.
The “Big Win”: Backdating Your Claim
What most news outlets fail to emphasize is the power of backdating. HMRC allows you to claim for any year since April 2021, provided you met the criteria during that time.
- Current Year: £252
- Backdated (4 Years): Up to £1,004
- Total Potential Windfall: £1,256
For a pensioner household, a four-figure check from HMRC can cover months of energy bills or represent the [cheapest way to live in the UK] comfortably during the winter months.
Are You Eligible? (The Checklist)
To qualify for this HMRC tax-free allowance boost in 2026, you must meet these simple criteria:
- You are married or in a civil partnership (living together is not enough).
- One partner earns less than £12,570 (this includes state pension income).
- The other partner earns between £12,571 and £50,270 (Basic rate taxpayer).
- Both partners were born after 6 April 1935. (If born before, you may be eligible for the even more generous Married Couple’s Allowance).
Why is This Rule “Little-Known”?
Many pensioners assume that once they stop working, their “tax life” is over. However, the state pension is a taxable income. If your total income crosses the £12,570 threshold, HMRC will take their cut. This rule is often missed because it requires a proactive application—HMRC will not automatically apply this for you.
How to Claim Your Refund Today
The process is surprisingly simple and does not require a paid accountant.
- Apply Online: Use the official [HMRC portal] to apply for Marriage Allowance. It takes roughly 10 minutes.
- Phone Call: You can call the HMRC helpline if you prefer speaking to an advisor, especially when requesting backdated payments.
- Automatic Change: Once approved, the lead partner’s tax code will be adjusted (usually to 1387M), meaning they will take home more money every month going forward.
Sources & Further Reading
- Official GOV.UK: Apply for Marriage Allowance – The official HMRC portal to check your eligibility and submit your claim.
- Marriage Allowance: How it works – Detailed guidance from the UK government on transfer rules and tax thresholds.