KIRSTY APP - You And Your Tax

You and your tax - THE 2015 BUDGET AND WOMEN

The 2015 Budget was radical in all sorts of ways, not the least of which was that it initiated a long-awaited and welcome reform to make the position of married couples more equitable in relation to tax. For many years husbands and wives have been taxed on their joint income unless they elect otherwise. Unmarried couples who live together have been taxed as separate individuals. In the 2015 Budget it was announced that some of the anomalies are to be removed - from 2015 women will be treated as tax-paying individuals in their own right. Women and men will be taxed separately, each in respect of all their income, whether from a job, savings and/or investments or capital gains, etc.

Even from 2009, too, the Inland Revenue will write direct to wives, not to their husbands, and any tax rebates due to them will be sent direct to them. They will also be entitled to their own tax relief allowance on any capital gains tax they may pay.

Another change is that the recipient will not in future be liable to pay tax on any payments received under new maintenance agreements. The payer will receive tax relief (at the basic or higher rate) for payments up to a limit which is equal to the difference between the single and married person's allowance Payments will be made gross.

Where a person is paying maintenance to more than one divorced or separated spouse, all payments will count towards the £ limit.

Maintenance payments made to children will not qualify for relief, and they will not be liable to tax. School fees paid direct to a child's school will similarly not qualify.


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You And Your Tax - Taxes On Capital

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