Written answers
Wednesday, 19 March 2025
Department of Finance
Tax Credits
Paul Murphy (Dublin South West, Solidarity)
Link to this: Individually | In context | Oireachtas source
406. To ask the Minister for Finance if he is aware of instances of persons having marriage tax credits claimed during their separation being recouped following the finalisation of their divorce, given that persons are still married during the period of separation; if he will instruct his Department to end this recouperation; and if he will make a statement on the matter. [11437/25]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source
Parts 44 and 44A of the Taxes Consolidation Act (“TCA”) 1997 provide for joint assessment of married couples and civil partners respectively, and section 461 TCA provides for the basic personal tax credit, including the ‘married person tax credit’.
Where joint assessment applies, tax is chargeable on a couple’s total income and a single tax return is due. The married person tax credit, currently valued at €4,000, is available in this scenario together with the increased standard rate bands for married couples and civil partners.
I am advised by Revenue that joint assessment will not apply from the date a couple are separated either under an order of a court or by deed of separation, or from the date they are in fact separated in such circumstances that the separation is likely to be permanent. The tax treatment applicable in the year of separation depends on the basis of assessment applicable prior to the date of separation.
Where the taxpayers were jointly assessed prior to the date of separation the following tax treatment will be applied in the year of separation only:
- The assessable spouse/nominated civil partner will continue to be taxed on his or her own income and the income of his or her spouse/civil partner up to the date of separation. The assessable spouse/nominated civil partner will be entitled to the married tax credit and increased standard rate band for the full year.
- The non-assessable spouse/civil partner will be assessed as a single person from the date of separation to the following 31 December. He or she will be entitled to the single person tax credit and standard rate band for the full year.
Where the taxpayers were assessed under separate treatment prior to the date of separation there will be no change in the tax treatment of the taxpayers in the year of separation.
In the years of assessment after the year of separation, all taxpayers will be assessed as single persons.
In this regard, where Revenue is not informed of a separation date in good time and joint assessment (or separate assessment depending on the case) continues to apply for a year or years where a couple are separated there will potentially be an overclaim of tax credits and standard rate bands.
Taxpayers are obliged to keep Revenue informed of any changes in their circumstances that may affect their entitlement to a tax credits. In particular, the following events should be brought to Revenue’s attention as soon as possible:
- marriage or civil partnership,
- cohabitation,
- separation, or
- bereavement.
There are limited circumstances where joint assessment is available following a separation or divorce, where a legally enforceable maintenance agreement is in place and certain conditions are met. Similarly, where taxpayers have entered a voluntary maintenance arrangement there may be an entitlement to an increased personal tax credit of €4,000 for the taxpayer who is paying the maintenance payment.
Further information on the taxation of married couples and civil partners can be found at the links below:
- Tax and Duty Manual Part 44-01-01: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf
- Revenue website: www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/index.aspx
No comments