Revenue Note for Guidance

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Revenue Note for Guidance

1020 Special provisions relating to year of marriage

Summary

This section provides that a married couple are taxed as single persons throughout the year of assessment in which their marriage took place. However, a measure of relief is given by way of repayment after the end of that year where the total tax which would have been paid and payable by the couple under this arrangement exceeds the total tax which would have been payable had they been married throughout the year. Such a repayment is divided between the spouses and is governed by general rules relating to allowances, deductions, reliefs and repayments.

Details

Definitions

(1) “income tax month” means a calendar month.

“year of marriage” is a year of assessment in which the marriage took place.

Relief

(3) Where the aggregate of —

  • the tax paid and payable by the husband on his total income for the year of marriage, and
  • the tax paid and payable by the wife on her total income for the year of marriage,

exceeds the tax which would have been payable by the assessable spouse on both their incomes (under joint assessment) if they had been married throughout the year of marriage, then the relief provided is calculated by way of the formula —

B

A ×

12

“A” is the amount of the excess.

“B” is the number of months (including part of a month) for which they were married in the year of marriage.

(2) A married couple may not opt for joint assessment under section 1018 for the year of marriage but may do so for any subsequent year of assessment.

Repayment of tax

(5) Where a husband and wife wish to obtain a repayment of tax under this section they must make a joint claim to the inspector after the end of the year of marriage.

(4) Where any repayment of tax is due, it is divided between the husband and wife according to the tax paid and payable by them.

(6) The general provisions relating to allowances, deductions and reliefs (section 459 and paragraph 8 of Schedule 28) and the rate of tax at which repayments are to be made (section 460) apply in the same manner to repayments under this section.

Relevant Date: Finance Act 2021