Exemption and Marginal Relief
Who can Claim?
Exemption
Any individual/married couple 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/married couple 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.
Relief Due
The exemption limits vary depending on age, marital status and the number of qualifying dependent children.