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Marriage and civil partnerships

  1. Overview
  2. Taxation after marriage or registration of civil partnership
  3. Joint assessment
  4. Separate assessment
  5. Separate treatment
  6. How your partner's residence affects your tax
  7. Effect on credits, reliefs and thresholds
  8. Transferring assets between spouses or civil partners

Separate assessment

If you are separately assessed, you and your spouse or civil partner are taxed as single people during the year.

The following tax credits, if you are claiming them, are divided equally between you:

Allocating tax credits, reliefs and rate band

Any unused tax credits, reliefs and rate bands can be transferred between each spouse or civil partner. This is the same as joint assessment. For this reason you cannot transfer:

The amount of unused rate band you can claim is limited. It cannot exceed the standard rate band available to a jointly assessed couple.

Separate assessment is also be referred to as ‘separate assessment within joint assessment’.

You may each complete a single return, or one of you may complete a joint tax return. A joint tax return must include the income, credits and reliefs for both of you.

Note

You cannot claim both the Home Carer Tax Credit and the increased rate band. You should claim whichever is more beneficial based on your own personal circumstances.

How to request separate assessment

Either you or your spouse or civil partner can request separate assessment.

You can update your civil status and request separate assessment through 'Manage My Record' or 'My Profile' in  myAccount. You can also upload any supporting documentation. Your spouse will be required to confirm the request by signing into myAccount and confirming the status update. Alternatively, you can put your request in writing to Revenue.

The request must be made between 1 October of the previous year and 31 March in the year you want separate assessment to apply. For example, in order to be separately assessed in 2021, the claim must be made between 1 October 2020 and 31 March 2021.

When you request separate assessment it cannot be backdated and it lasts until you request to change it. The spouse or civil partner who made the request must also be the one to withdraw it.

  • Example

    Jennifer and Martin are married. They do not have any children. They have chosen to be separately assessed.

    In 2020 Jennifer’s total income is her employment income of €45,000. Her husband Martin has investment income of €26,000.

    As they are taxed as single people, the first €34,550 of their income taxed at the standard rate of 20%. Any income above this limit is taxed at the higher rate band 40%.

    Jennifer’s 2020 Tax Credits
    CreditsAmounts
    Single Person Tax Credit €1,650
    Employee PAYE Tax Credit €1,650
    Total €3,300
    Jennifer's 2020 Income Tax liability
      ValuesAmounts
    Total income   €45,000
    Income taxed @ 20% €35,300 €7,060
    Income taxed @ 40% €9,700 €3,880
    Total Income Tax   €10,940
    Less credits   €3,300
    Tax payable   €7,640
    Martin’s 2020 Income tax liability
      ValuesAmounts
    Total income   €26,000
    Income taxed @ 20% €26,000 €5,200
    Total Income Tax   €5,200
    Less credits   €1,650
    Tax payable   €3,550

    Their combined payable tax in 2020 is €11,190 (€7,640 + €3,550).

    As Martin’s income was less than €35,300, he will have €9,300 of his standard tax band unused (€35,300 – €26,000). He can transfer his unused standard rate band of €9,300 to Jennifer.

    If Jennifer was jointly assessed, as the assessable spouse the first €44,600 of her income could be taxed at 20%. Jennifer can accept up to €9,300 (€44,600 - €35,300) of Martin’s unused standard rate band.

    Jennifer can recalculate her 2020 income tax with Martin’s unused standard rate band.

    Jennifer’s 2020 Tax Credits
    CreditsAmounts
    Single Person Tax Credit €1,650
    Employee PAYE Tax Credit €1,650
    Total €3,300
    Martin’s 2020 Tax Credits
    CreditsAmounts
    Single Person Tax Credit €1,650
    Total €1,650
    Jennifer's recalculated 2020 income tax liability
      ValuesAmounts
    Total income   €45,000
    Income taxed @ 20% €44,600 €8,920
    Income taxed @ 40% €400 €160
    Total Income Tax   €9,080
    Less credits   €3,300
    Tax payable   €5,780

    Their revised combined payable tax in 2020 is €9,330 (€5,780 + €3,550).

    Jennifer and Martin transfer the rate bands by completing an Income Tax Return (Form 12) online using myAccount.

Next: Separate treatment

Published: 12 April 2021 Print this page

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