What is 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:
- Married or Civil Partner’s Tax Credit
- Age Tax Credit
- Blind Tax Credit
- Incapacitated Child Tax Credit.
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 Employee Tax Credit
- employment expenses
- the increase in the standard rate band.
The amount of unused rate band you can claim is limited. It cannot exceed the standard rate band available to a jointly assessed couple.
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.
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie