1031E Special provisions relating to year of registration of civil partnership

Summary

This section provides that civil partners are taxed as single persons throughout the year of assessment in which they entered into a civil partnership. 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 civil partners under this arrangement exceeds the total tax that would have been payable had they been civil partners throughout the year. Such a repayment is divided between the civil partners and is governed by general rules relating to tax credits, deductions, reliefs and repayments.

Details

Definitions

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

“year of registration” in relation to 2 individuals who are civil partners of each other means–

1. in the case of civil partners who have entered into a civil partnership with each other which was registered in the State, is the year of assessment in which the civil partnership was registered and
2. in the case of civil partners whose legal relationship, entered into in another state is recognised pursuant to an order made under section 5 of the Civil Partnership and Certain Rights and obligations of Cohabitants Act 2010, the year of assessment in which falls the day on which, by virtue of subsection (2) of that section, the civil partners are to be treated as civil partners under the law of the State.

Relief

(3) Where the aggregate of —

• the tax paid and payable by the nominated civil partner on his or her total income for the year of registration, and
• the tax paid and payable by the other civil partner on his or her total income for the year of marriage,

exceeds the tax which would have been payable by the nominated civil partner on both their incomes (under joint assessment) if they had been civil partners throughout the year of registration, then the relief provided is calculated by way of the formula —

“A” is the amount of the excess.

“B” is the number of months (including part of a month) from the date of registration of their civil partnership to the end of the year of assessment.

(2) Civil partners may not opt for joint assessment under section 1031D for the year of registration but may do so for any subsequent year of assessment.

Repayment of tax

(5) If a couple in a registered civil partnership 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 registration.

(4) Where any repayment of tax is due, it is divided between the civil partners 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 2019