Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

1023 Application for separate assessments

Summary

Separate assessment is an option open to a married couple. This section sets out how it is to apply and provides for the application of income tax provisions to the couple as if they were not married, while at the same time ensuring that they do not —

  • lose out on personal reliefs, and
  • pay more tax than they would if they had been assessed together.

While a return for both incomes may be sent by either spouse, the Revenue Commissioners may, where they are not satisfied, require a further return from either spouse.

Details

Definition

(1) “personal reliefs” are defined, for the purposes of this section and section 1024, as relief under any of the provisions specified in the Table in section 458, apart from relief for certain widowed persons, one-parent families and widowed parents (sections 461A, 462B and 463).

Application for separate assessment

(2) A husband and wife, who have elected to be jointly assessed to tax on their combined incomes, may, if either of them applies in the manner and form prescribed by the Revenue Commissioners, have their incomes separately assessed and charged to tax for the year of assessment (to which the application relates) as if they were not married.

In such circumstances, the provisions of the Income Tax Acts with respect to the assessment, charge and recovery of tax apply as if they were not married, except that —

  • the total amount of personal reliefs allowed to the husband and wife is to be the same as if they were not separately assessed,
  • the total tax payable by the couple for that year is to be the same as if they had not been separately assessed, and
  • the provisions for apportioning the personal reliefs between the husband and the wife and on charging tax on the income of each spouse apply as set out in section 1024.

(3) In applying for separate assessment, the application must be made —

  • in the case of a couple marrying during the course of a year, before the 1st of April of the following year,
  • in any other case, within 6 months before the 1st of April in the particular year of assessment.

(4) An application for separate assessment has effect for the year in which it is made and for all subsequent years of assessment. If, however, this application is withdrawn by written notice before the 1st of April in any subsequent year, the couple will not be separately assessed for the year in which the application is withdrawn or for any subsequent year of assessment.

An application for separate assessment can only be withdrawn by the spouse who made the application.

Income tax returns

(5) A return of the total incomes of the husband and the wife may be made by either one of the spouses but, if the Revenue Commissioners are not satisfied with the return they may require a return to be made by the husband or by the wife, as the case may be.

(6) The Revenue Commissioners may by notice require returns to be made at any time.

Relevant Date: Finance Act 2021