Couples in the UK can use Marriage Allowance to move a section of their personal tax allowance over to their spouse or civil partner. This means families can cut their tax bill by up to £252 each year. However, there are circumstances where you may need or wish to cancel your Marriage Allowance. In this guide, you’ll learn about the right time to cancel and what occurs in case of divorce or someone’s death.
Whether you’re navigating life changes or simply reassessing your finances, understanding the correct steps to cancel your Marriage Allowance is essential.
What exactly is Marriage Allowance?
Marriage Allowance is designed for couples where one earns less than their personal allowance (£12,570 for 2025/26) and the other pays basic rate tax. If there is unused allowance, the lower earner can give up to 10% to their partner which can help lower the couple’s tax bill.
This should be noted: Marriage Allowance is not the same as the Married Couple’s Allowance which is for married couples when one partner was born before 6 April 1935.
Need guidance in working out how much tax you’ll save whether you cancel Marriage Allowance now or later? You can use our simple Income Tax Calculator at no charge right now!
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Is Marriage Allowance Available to All?
If you and your partner want to qualify, you have to meet the following requirements:
If you are married or in a civil partnership, you should study this information.
Neither partners receive more than the annual personal allowance.
The other partner is considered a basic rate taxpayer in the event that they earn between £12,571 and £50,270 this year.
Both of them came into the world on or after 6 April 1935.
People should claim the child element online on the HMRC website, and if eligible, they can backdate it for up to four years.
When Should You Cancel Your Marriage Allowance?
You may need to cancel your Marriage Allowance if:
- There is a change in your relationship, such as a divorce or separation
- One partner sadly passed away.
- The lower earner’s income goes above the amount of the allowance
- Their earnings move into a band when they start to be taxed at a higher rate.
If you take this step, there is a chance your tax code will be wrong or you could pay too much tax over the year.
Want to see how the new change could impact your taxes? Keep yourself informed by using our UK Tax Calculator
How to Cancel Your Marriage Allowance?
There are two ways to cancel your Marriage Allowance:
- You can cancel an order over the phone.
For more information, call HMRC at 0300 200 3300. You’ll need:
An important detail you need is your National Insurance number is…
Your partner’s National Insurance number
- Cancelling a Tremor binary option trade via post is one way to do it.
Address a letter to HMRC and state the following:
Your full name, as well as the address where you live
Your National Insurance number
You will need to give your partner’s name and National Insurance number.
I have asked to cancel the Marriage Allowance.
Mail the document to the address that appears on your latest return or letter from HMRC.
After the cancellation, HMRC will update the tax codes for both partners. Sometimes, you’ll get a new tax calculation for the year, depending on when the cancellation is finalised.What Happens Next When You Cancel?
When you cancel your Marriage Allowance, your tax code is updated, and you will no longer receive the benefit. While the greater part of the couple’s income now belongs to the higher earner, they pay more tax.
It’s important to let your partner know if you cancel, as the move will change both your taxes. You can see an estimate of your new tax bill by using our Salary Tax Calculator.
What If Your Partner Dies?
The Marriage Allowance will be cancelled when your partner dies. Your tax code will be changed if you are the surviving partner. In a few situations, you might be permitted to use your late partner’s leftover personal allowance for this tax year.
You should get in contact with HMRC when you want to claim.
The deceased person’s National Insurance number
Died on
Additional details if needed
Use our Bereavement Tax Impact Calculator to learn what effect bereavement could have on your finances.
What Happens If Your Marriage or Civil Partnership Ends?
After divorce or dissolving your civil partnership, you won’t be eligible for Marriage Allowance. It’s important to contact HMRC right away so your tax code can be corrected.
If you wait to cancel, there might be mistakes made when calculating your tax return, so you should do it right away if your situation changes.
What Should You Do if You Cancel Before Your Course Begins?
Once you cancel your Marriage Allowance, you can reapply in the future if you meet the eligibility criteria again. But if you cancel your policy because of events like separation or bereavement, you may find that you’re not eligible to claim a new one.
If a couple’s income changes, they may have the chance to reapply in a future tax year.
Final Thoughts
Knowing how and when to cancel your Marriage Allowance can help you avoid tax complications and ensure your financial records stay accurate. You need to cancel insurance when appropriate to avoid being charged taxes on extra premiums you don’t need.
If you’d like to know how cancelling might change your tax status, you can check with HMRC or hire a qualified tax adviser.
The content provided on TaxCalculatorsUK, including our blog and articles, is for general informational purposes only and does not constitute financial, accounting, or legal advice.
