Taxation of Married Couples and Civil Partners

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Year of Marriage or Civil Partnership registration

In the year of marriage or civil partnership regristration , for tax purposes, both spouses or civil partners continue to be treated as two single people.

However, if the tax payable as two single people in that year is greater than the tax which would be payable as a couple in a marriage or civil partnership - a refund of the difference can be claimed.

Any refund due is apportioned by the number of months from the date of marriage or registration of the civil partnership to the end of the tax year and will be calculated after the end of the tax year. This refund normally only arises where a couple are liable at different tax rates where one spouse or civil partner benefits from the unused lower tax rate/credits of the other spouse or civil partner.

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Exceptions

The Married Tax Credit is due on a Cumulative Basis where the marriage or civil partnership regristration takes place before 1st February.

(For years prior to 2002 the date was 6th May).

If only one spouse or civil partner is in employment the Married or Civil Partners Tax Credit is due on a Week I Basis.

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Subsequent Years

The following options are available:

  • Joint Assessment/Aggregation.
  • Separate Assessment.
  • Separate Treatment/Assessment as Single Individuals.

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Joint Assessment/Aggregation

Joint Assessment is usually the most favourable basis of assessment for a couple in a marriage or civil partnership. One of the spouses or civil partners - the assessable spouse or the nominated civil partner, assumes the responsibility for the joint tax liability. The other spouse or civil partner is called the non-assessable spouse or the other civil partner. The Assessable Spouse or Nominated Civil Partner

The Assessable Spouse

  1. Is assessed on the combined total income.
  2. Receives combined tax credits and standard rate bands.
  3. Should file the joint tax return and include full details of the couples combined income.

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To claim

  • The couple themselves elect which of them is to be the assessable spouse or nominated civil partner - A verbal claim is acceptable.
  • Election must be made on or before 1st April in the tax year.
  • In the absence of a nomination, Revenue selects the spouse or civil partner with the higher income to be the assessable spouse or nominated civil partner..
  • The credits and reliefs can be split between the couple in whatever way they wish - (PAYE Tax Credit and Employment Expenses are not transferable).
  • If both spouses or civil partners are in employment, both will receive a certificate of tax credits and standard rate band.
  • All credits and reliefs due to the couple are shown on both spouses notices.

Repayments: - Repayments arising from an end of year review will in general be apportioned and repaid on the basis of the tax paid by each spouse or civil partner.

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Separate Assessment

This Basis of Assessment is available to couples who opt or who were deemed to have opted for aggregation. Each spouse’s or civil partner’s tax affairs are independent of the other spouse or civil partner.

The following tax credits are divided equally between the spouses or civil partner.

  • Married or Civil Partners
  • Age
  • Blind
  • Incapacitated Child

The balance of the tax credits/ reliefs are given in proportion to the cost borne by each spouse or civil partner. PAYE Tax Credit and Expenses if due, are given to appropriate spouse or civil partner.

Any unused credits or standard rate band (excluding the increase to the standard rate band) may be transferred to the other spouse or civil partner - but only at the end of the tax year by review.

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To claim

Either spouse or civil partner may claim - Verbal Claim acceptable.

Time Limit:

Claim must be made within 6 months before 1 April in that year.

Withdrawal:

Must be made by spouse or civil partner who applied. A claim for Separate Treatment by the other spouse or civil partner effectively withdraws Separate Assessment.

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Separate Treatment: (Single Individual)

Not to be confused with Separate Assessment.

Under Separate Treatment each spouse or civil partner is treated as a single person for tax purposes.

Each Spouse or Civil Partner

  1. Must submit their own tax return.
  2. Is assessed on his/her own income.
  3. Receives tax credits and rate band appropriate to a single individual.
  4. Cannot claim relief for payment made by the other spouse or civil partner.

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To Claim

Either spouse or civil partner can claim.

Must be made before the end of the tax year.

Verbal Claim acceptable.

Withdrawal:

Must be made by spouse or civil partner who originally applied.

Must be made before the end of the tax year.

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Where to send claim

Use your PPS number to find the postal address for your Revenue office in our Contact Locator.

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Reference Material

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