Exemption and Marginal Relief

• Who can Claim?
• Relief Due
• Reference Material

Who can Claim?

Exemption

Any individual or a couple in a marriage or civil partnership whose *total income from all sources is less than or equal to the exemption limit will not have to pay tax for that year.

Marginal Relief

Any individual or a couple in a marriage or civil partnership whose *total income from all sources is slightly over the exemption limit may qualify for marginal relief. Marginal Relief will only be granted if it is more beneficial to the claimant than their tax credits. A certificate can issue during the tax year granting the relevant exemption limit and any income earned over the exemption figure is taxed at 40%.

*Total income means gross income less certain deductions e.g. expenses, covenanted amounts, mortgage interest etc.

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Relief Due

The exemption limits vary depending on age, civil status and the number of qualifying dependent children.

Reference Material

• Leaflet IT 1 - Tax Credits, Reliefs and Rates
• Leaflet IT 8 - Tax Exemption & Marginal Relief

Last Updated: November 2011

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