Kayleigh Smith, 36, and William Nelson, 44, were a couple and died alongside 14 others in Wednesday’s incident.
Ms Smith graduated from the Arden School of Theatre in Manchester, where Mr Nelson worked as a theatre director.
The identity of the third British victim has not yet been confirmed.
Five Portuguese citizens also died when the carriage plummeted down the hill, but most of those killed were foreigners.
Police said the other fatalities were two Canadians, two South Koreans, one American, one French citizen, one Swiss and one Ukrainian.
All but one of the victims was declared dead at the scene – and many others in the carriage were also injured.
The yellow carriages of the Gloria funicular are a big draw for tourists, as well as a proud symbol of the Portuguese capital.
The journey is just 265m (870ft) and takes three minutes and operates up a steep hill, with two carriages travelling in opposite directions.
The aftermath of the crash one of the carriages crumpled and twisted against the side of a building.
Witnesses said it hurtled down the hill before leaving the tracks and crashing 30m from the bottom of the line.
Prime Minister Luis Montenegro called it “one of the biggest tragedies of our recent past” and authorities are under intense pressure to quickly identifying the cause.
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