Exemption and marginal relief

Marginal relief

If your total income is more than the exemption limit, you may still be able to claim marginal relief.

Marginal relief is available where:

  • you or your spouse or civil partner is over 65
  • and
  • your total income is less than twice the exemption limit.

Marginal relief restricts your income tax payable to 40% of the difference between your total income and your exemption limit. Where marginal relief is granted, you receive no further credits on your income.

Marginal Relief will only be given to you where it is more beneficial than using your tax credits.

You may have been granted marginal relief in a year, but feel that claiming additional tax credits would have been more beneficial.

Where this occurs, you can claim your credits on your eForm 12 using myAccount as normal. We will then calculate the income tax payable using your credits and compare to your tax payable under marginal relief. If the income tax payable is lower using your credits, we will reduce your income tax charge accordingly.