Maintenance Payments Relief
Maintenance Payments Relief can reduce your tax if you make maintenance payments to your ex-spouse or former civil partner. It is an amount that HM Revenue and Customs (HMRC) take off your tax bill - so you can only claim it if you pay tax.
Who can get Maintenance Payments Relief?
You can get Maintenance Payments relief if all of the following apply:
- you or your ex-spouse or former civil partner were born before 6 April 1935
- you're separated or divorced or the civil partnership has dissolved and you're making the payments under a Court Order
- the payments are for the maintenance of your ex-spouse or former civil partner (provided they aren't now remarried or in a new civil partnership) or for your children who are under 21
For the tax year 2009-10 it can reduce your tax bill by the lower of the following two amounts:
- 10 per cent of £2,670 (£267) - this will apply where you make maintenance payments of £2,670 or more a year
- 10 per cent of the amount you've actually paid - this will apply where you make maintenance payments of less than £2,670
You can't claim a tax reduction for any voluntary payments that you make for a child, ex-spouse or former civil partner.
Maintenance Payments Relief - worked example
You're 75, divorced, have taxable income of £20,000 and pay your ex-spouse £1,200 maintenance a year (£100 per month):
- your taxable income is £20,000
- your tax-free allowance is £9,490 (age-related Personal Allowance for 65 to 74 year olds)
- HMRC subtract your tax-free allowance (£9,490) from your taxable income (£20,000) - that leaves you with taxable income of £10,510, but you can use your Maintenance Payments relief to reduce your tax bill
- you make maintenance payments of £1,200 so are due tax relief of £120 (10 per cent of £1,200)
- this amount is deducted from your tax bill
- Check Income Tax rates and allowances on the HMRC website
How to claim Maintenance Payments Relief
To claim Maintenance Payments relief simply contact your Tax Office by following the link below.
If you have already claimed Maintenance Payments relief and you receive a 'PAYE Coding Notice' this will tell you how much you are getting. If you fill in a Self Assessment tax return HMRC will ask you to include details of your Maintenance Payments relief claim.
- Understanding your PAYE Coding Notice
- Do you need to complete a tax return?
- Contact details for all Tax Offices
If you receive maintenance payments
You do not pay tax on any maintenance payments that you receive.
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