Written answers
Tuesday, 3 March 2015
Department of Finance
Tax Code
Terence Flanagan (Dublin North East, Independent)
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206. To ask the Minister for Finance if he will address a matter (details supplied) regarding taxation; and if he will make a statement on the matter. [8968/15]
Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a wide range of statistical information is now available on their new, enhanced, statistics webpage at . Tax credits, the standard rate cut off point and the age exemptions amounts are published in Revenue's Statistical Reports, available here , in the "Income Tax" chapter for each year up to 2012.
As regards the years 2013 to 2015 (inclusive), details are set out hereunder:
2013 and 2014
| Tax Credit | 2013 € | 2014 € |
|---|---|---|
| Single Person | 1,650 | 1,650 |
| Married or in a Civil Partnership | 3,300 | 3,300 |
| PAYE Credit | 1,650 | 1,650 |
| Widowed Person or Surviving Civil Partner (without dependent children) | 2,190 | 2,190 |
| One Parent Family Tax Credit | 1,650 | Abolished |
| Single Person Child Carer Tax Credit | - | 1,650 |
| Incapacitated Child Credit Max | 3,300 | 3,300 |
| Blind Tax Credit: Single Person Married or in a Civil Partnership - One Spouse or Civil Partner Blind Married or in a Civil Partnership - Both Spouses or Civil Partners Blind | 1,650 1,650 3,300 | 1,650 1,650 3,300 |
| Widowed Parent: Bereaved in 2013 Bereaved in 2012 Bereaved in 2011 Bereaved in 2010 Bereaved in 2009 Bereaved in 2008 | - 3,600 3,150 2,700 2,250 1,800 | 3,600 3,150 2,700 2,250 1,800 - |
| Age Tax Credit: Single or Widowed or Surviving Civil Partner Married or in a Civil Partnership | 245 490 | 245 490 |
| Dependent Relative | 70 | 70 |
| Home Carer | 810 | 810 |
Tax Rates and Tax Bands.
| Personal Circumstances | 2013 € | 2014 € |
|---|---|---|
| Single or Widowed or Surviving Civil Partner, without dependent children | 32,800 @ 20% Balance @ 41% | 32,800 @ 20% Balance @ 41% |
| Single or Widowed or Surviving Civil Partner, qualifying for One Parent Family Tax Credit (2013), Single Person Child Carer Tax Credit (2014) | 36,800 @ 20% Balance @ 41% | 36,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, one Spouse or Civil Partner with Income | 41,800 @ 20% Balance @ 41% | 41,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, both Spouses or Civil Partners with Income | 41,800 @ 20% with increase of 23,800 max. Balance @ 41% | 41,800 @ 20% with increase of 23,800 max. Balance @ 41% |
Age Exemption Limits
| Personal Circumstances | 2013 € | 2014 € |
|---|---|---|
| Single or Widowed or a Surviving Civil Partner, 65 years of age & over | 18,000 | 18,000 |
| Married or in a Civil Partnership, 65 years of age & over | 36,000 | 36,000 |
UNIVERSAL SOCIAL CHARGE (USC)The Standard Rates of USC
| USC Thresholds | - |
|---|---|
| 2013 & 2014 | - |
| Income | Rate |
| Income up to €10,036.00 | 2% |
| Income from €10,036.01 to €16,016.00 | 4% |
| Income above €16,016.00 | 7% |
The Reduced Rates of USC
| USC Thresholds | - |
|---|---|
| 2013 & 2014 | - |
| Income | Rate |
| Income up to €10,036.00 | 2% |
| Income from €10,036.01 to €16,016.00 | 4% |
| Income above €16,016.00 | 7% |
The Exempt Categories of USC
| 2013 & 2014 |
|---|
| Where an individual's total income for a year does not exceed €10,036 |
| All Department of Social Protection payments |
| Income already subjected to DIRT |
3% Surcharge (non-PAYE income)
A surcharge of 3% applies on non-PAYE income that exceeds €100,000 in a year, regardless of age.
2015
| Tax Credit | 2015 € |
|---|---|
| Single Person | 1,650 |
| Married or in a Civil Partnership | 3,300 |
| PAYE Credit | 1,650 |
| Widowed Person or Surviving Civil Partner (without dependent children) | 2,190 |
| Single Person Child Carer Tax Credit | 1,650 |
| Incapacitated Child Credit Max | 3,300 |
| Blind Tax Credit: Single Person Married or in a Civil Partnership - One Spouse or Civil Partner Blind Married or in a Civil Partnership - Both Spouses or Civil Partners Blind | 1,650 1,650 3,300 |
| Widowed Parent: Bereaved in 2015 Bereaved in 2014 Bereaved in 2013 Bereaved in 2012 Bereaved in 2011 Bereaved in 2010 | - 3,600 3,150 2,700 2,250 1,800 |
| Age Tax Credit: Single or Widowed or Surviving Civil Partner Married or in a Civil Partnership | 245 490 |
| Dependent Relative | 70 |
| Home Carer | 810 |
Tax Rates and Tax Bands
| Personal Circumstances | 2015 € |
|---|---|
| Single or Widowed or Surviving Civil Partner, without dependent children | 33,800 @ 20% Balance @ 40% |
| Single or Widowed or Surviving Civil Partner, qualifying for Single Person Child Carer Credit | 37,800 @ 20% Balance @ 40% |
| Married or in a Civil Partnership, one Spouse or Civil Partner with Income | 42,800 @ 20% Balance @ 40% |
| Married or in a Civil Partnership, both Spouses or Civil Partners with Income | 42,800 @ 20% with increase of 24,800 max. Balance @ 40% |
Age Exemption Limits
| Personal Circumstances | 2015 € |
|---|---|
| Single or Widowed or a Surviving Civil Partner, 65 years of age & over | 18,000 |
| Married or in a Civil Partnership, 65 years of age & over | 36,000 |
UNIVERSAL SOCIAL CHARGE (USC)
The Standard Rates of USC
| USC Thresholds | - | - | - |
|---|---|---|---|
| 2014 | - | 2015 | - |
| - | Rate | - | Rate |
| Income up to €10,036.00 | 2% | Income up to €12,012.00 | 1.5% |
| Income from €10,036.01 to €16,016.00 | 4% | Income from €12,012.01 to €17,576.00 | 3.5% |
| Income above €16,016.00 | 7% | Income from €17,576.01 to €70,044.00 | 7% |
| - | - | Income above €70,044.00 | 8% |
The Reduced Rates of USC
| USC Thresholds | - | - | - |
|---|---|---|---|
| Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. | - | - | - |
| 2014 | Rate | 2015 | Rate |
| Income up to €10,036.00 | 2% | Income up to €12,012.00 | 1.5% |
| Income above €10,036.00 | 4% | Income above €12,012.00 | 3.5% |
The Exempt Categories
| 2015 |
|---|
| Where an individual's total income for a year does not exceed €12,012 |
| All Dept of Social Protection payments |
| Income already subjected to DIRT |
3% Surcharge (non-PAYE income)
A surcharge of 3% applies on non-PAYE income that exceeds €100,000 in a year, regardless of age.
Terence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source
207. To ask the Minister for Finance if he will address a matter (details supplied) regarding income; and if he will make a statement on the matter. [8969/15]
Michael Noonan (Limerick City, Fine Gael)
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The treatment of maintenance payments for taxation purposes depends on the arrangements in place regarding the payment of the maintenance and also the basis of assessment which is applicable to the couple making the payments. In order to determine if the maintenance is taxable it must be established if the maintenance relates to payments that are legally enforceable or if the payments are on a voluntary basis.
Voluntary maintenance relates to an informal arrangement whereby payments are made on a voluntary basis. As these payments would not be legally enforceable, they are not chargeable as income for taxation purposes in the hands of the recipient.
However, maintenance which is payable under a legally enforceable maintenance agreement, for example payments under a Deed of Separation or Divorce Settlement, is chargeable as income in the hands of the recipient for tax purposes. Sections 1025 (Married persons) and 1031J (civil partners) of the Taxes Consolidation Act 1997 contain the relevant provisions:
1. the person making the payments makes the payments gross;
2. the person making the payments is allowed, in computing his or her total income for tax purposes, a deduction for the maintenance payments made in the year of assessment for the benefit of the other spouse or civil partner;
3. the recipient is taxable in respect of such maintenance payments received; and
4. both individuals are taxed as single persons.
The extent of any tax liability will depend on the amount of the maintenance and on the total income of the individual receiving the maintenance. Only payments made for the benefit of the other spouse or civil partner qualify for tax relief. Payments which are made for the benefit of a child are not regarded as maintenance for the purposes of tax relief.
There is also an alternative basis of assessment available to couples who elect to be assessed to income tax in accordance with sections 1026 (married persons) or 1031K (civil partners) of the Taxes Consolidation Act 1997. This alternative basis of assessment only applies to maintenance arrangements which are legally enforceable and also where a couple have elected jointly for this alternative basis of assessment. In addition:
1. both parties must be resident in the State for tax purposes for the year of assessment; and
2. neither must have entered into another marriage or civil partnership.
Where an election by both parties is made under sections 1026 or 1031K the maintenance payments are ignored for tax purposes; i.e.:
1. the person making the payments gets no deduction for the maintenance payments; and
2. the recipient is not taxable on the maintenance received.
Where the recipient has no other income he or she will, therefore, have no tax liability because the maintenance is ignored for tax purposes.
This and other relevant information in relation to the taxation of married couples and civil partners is available on the Revenue website.
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