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Hi again.Provided you or your wife were born before 6 April 1935, you were entitled to the married couples' allowance for 2010/11 of £6,965 as you will see from the table here. The allowance will save you £696.50 in tax as tax relief is given at 10%. It's not a straight deduction from your income like the personal allowance. You can see how the married couples' allowance works here. The basic personal allowance for you in 2010/11 was £9,640 so the first £9,640 of your income in that year would be tax free. The personal and married couples' allowances for 2011/12 to 2013/14 are here.
Please note that where your income is above a certain level for a tax year, you lose some or all of the age allowances and some of the married couples' allowance.
I hope this helps but let me know if you have any further questions.
Icant see an ACCEPT button !